- ETHZilla sold ETH to repurchase undervalued shares, aiming to tighten the price gap.
- Share count reduction aims to counter short-term pressure while keeping large ETH reserves for future plans.
ETHZilla, a Nasdaq-listed company, announced that it sold approximately $40 million worth of its Ethereum holdings on October 24, 2025, directing the proceeds into its existing share repurchase programme.
Since executing the sale, the company has repurchased about 600,000 shares at a cost of approximately $12 million. This activity forms part of a larger $250 million repurchase authorization that was approved in August and scheduled to run through June 30, 2026.
ETHZilla is buying back its shares at a time when the share price is lower than the value of its Ethereum holdings. The company aims to reduce the gap between the market price of the share and the value of its assets per share. Chairman and CEO McAndrew Rudisill said,
By opportunistically repurchasing shares while our stock is trading below NAV, we plan to reduce the number of shares that are available for stock loan/borrow activity, while increasing the NAV per share of the Company.
0/ ETHZilla today announced share buyback of approximately $40 million as ETHZ trades at a significant discount to NAV. Since Friday, October 24, we have repurchased ~600,000 shares for roughly $12M under the $250M buyback authorization, and plan to continue to repurchase our…
— ETHZilla (@ETHZilla_ETHZ) October 27, 2025
Share Buyback Sparks Sharp Stock Rebound
Ethereum changed hands at $3,900 at the time of the sale. Following that, the price pushed toward $4,250 before cooling off. At the time of writing, it is trading near $4,112. Despite the sale of roughly $40 million in holdings, the company still maintains around $400 million worth of ETH in its treasury. The firm said,
ETHZilla believes this share buyback is in the best interest of its shareholders because of recent, concentrated short selling believed to have kept the stock under pressure. We remain confident in our outlook given no net debt, and we continue to hold ~$400 million of ETH on our balance sheet to support future strategic initiatives.
The announcement followed a call from major shareholder Dmitry Semenikhin, who owns about 2.2% of the company. He urged management to use the company’s Ethereum reserves to reduce the number of shares in the market. He said this would help close the gap between the company’s real value and its market value.
ETHZilla’s stock, which experienced weakness in recent weeks, saw a strong rebound. Shares closed at $20.65 on Monday after climbing 14.5% during regular trading. After-hours trading added another 14%, lifting the price to $23.55.
ETHZilla Invests $15M to Boost Tokenized Assets
Additionally, on Oct 23, ETHZilla announced that it will invest $15 million for a 15% position in Satschel, Inc., parent of Liquidity.io. The deal aims to expand tokenization of real-world assets on Ethereum Layer 2 networks.
The current repurchase plan follows earlier buying activity in September, where more than 6 million shares were bought. The company stated that future repurchases may take place on the open market or through negotiated deals at prices available at the time of the transaction.
The company said it plans to continue selling its Ethereum holdings to buy back its own shares until “the discount to NAV is normalized.”