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Ethereum Latest Update: ETHZilla Offloads $40M in ETH to Reduce Gap Between Stock Price and NAV

Ethereum Latest Update: ETHZilla Offloads $40M in ETH to Reduce Gap Between Stock Price and NAV

Bitget-RWA2025/10/28 06:46
By:Bitget-RWA

- ETHZilla sold $40M in ETH to fund stock buybacks, aiming to reduce its 30% NAV discount by repurchasing 600K shares at $12M. - The move follows a $250M buyback plan leveraging treasury strength, with remaining funds to continue narrowing the NAV gap until normalization. - Competitor BitMine expanded its ETH holdings to 3.24M, while ETHZilla's Satschel partnership targets tokenized real-world assets. - Analysts highlight ETHZilla's high Price/Book ratio (50.97) but note its liquidity-focused strategy alig

ETHZilla Corporation (Nasdaq: ETHZ), a tech company focused on integrating traditional and decentralized finance, has liquidated $40 million worth of

(ETH) from its treasury to support a share buyback initiative. The goal is to reduce the gap between its share price and net asset value (NAV), as detailed in a . Since October 24, 2025, the company has already reacquired about 600,000 shares for $12 million as part of a $250 million repurchase program authorized by its board, according to . CEO McAndrew Rudisill highlighted that this approach uses the company’s strong balance sheet to make "immediately accretive" buybacks while the stock trades below NAV, a point also noted by Investing.com. The remaining funds will continue to be used for repurchases until the NAV discount closes, according to .

After the sale, ETHZilla retains approximately $400 million in

, making it the fifth-largest public holder of Ethereum, as reported by . This decision comes as the company’s shares are trading at a 30% discount to NAV, according to a summarizing Blockworks data. Rudisill mentioned that the buybacks will decrease the number of shares available for lending or borrowing, while increasing NAV per share, as previously mentioned by Investing.com. Following the announcement, the stock jumped 14.5% during regular hours and gained another 9–12% after hours, though it still trades well below its all-time high of $107, according to .

Ethereum Latest Update: ETHZilla Offloads $40M in ETH to Reduce Gap Between Stock Price and NAV image 0

The company’s recent moves reflect wider industry trends, as many crypto treasuries are valued below their underlying assets, according to

. Rival BitMine Immersion Technologies, now the top Ethereum treasury with $13.4 billion in crypto and cash—including 3.24 million ETH—recently increased its holdings by acquiring 203,826 ETH. At the same time, ETHZilla’s strategic alliance with Satschel, Inc.—which gives it a 15% ownership in Liquidity.io’s parent company—demonstrates its commitment to tokenized real-world assets, as outlined by Blockonomi.

Analysts point out ETHZilla’s high Price/Book ratio of 50.97 and a low financial health score of 1.61, as first noted by Investing.com. However, the company’s focus on liquidity and NAV could help stabilize its valuation. The buyback plan is similar to those of other firms, such as SharpLink Gaming, which approved a $1.5 billion repurchase, as also discussed by Blockonomi. Institutional investors, including Peter Thiel’s Founders Fund, which acquired a 7.5% stake in August, show strong support for ETHZilla’s hybrid approach to crypto liquidity and equity management, as previously reported by Crypto Economy.

With Ethereum’s price climbing 3.58% over the past week, ETHZilla’s recent sales—executed at around $3,900 per ETH—allow it to benefit from market swings while maintaining long-term treasury strength. By selling just 10% of its reserves, the company aims to strike a balance between immediate returns and strategic asset retention.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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