ETHZilla Sells $40M in ETH to Fund Share Buybacks, Stock Jumps 14%

In Brief

• ETHZilla repurchases 600,000 shares using $12M from a $40M Ethereum treasury sale.
• Stock surges 14.53% to $20.65, then rises another 12.11% in after-hours trading.
• Company plans continued ETH sales to fund buybacks until NAV discount is reduced.

ETHZilla Corporation has sold $40 million worth of its Ethereum treasury to fund share repurchases under its buyback program. The company has already used $12 million of the proceeds to repurchase approximately 600,000 common shares.

The board-approved $250 million buyback plan aims to narrow the discount between ETHZilla’s share price and its net asset value. The company plans to continue selling ETH to fund additional share buybacks until the NAV gap is reduced.

Chairman McAndrew Rudisill said the firm will reduce share count while enhancing NAV per share. The strategy also seeks to limit the stock’s availability for borrowing and shorting activity.

ETHZilla’s ETH holdings remain substantial, with approximately $400 million in ether retained after the latest sale. The move follows increasing pressure on digital asset treasuries to align stock prices with underlying crypto asset values.

Market Reacts Strongly to Repurchase Announcement

ETHZilla shares surged 14.53% on October 27, closing at $20.65 amid strong investor response to the repurchase move. The stock rebounded from a session low of $19.56 and hit an intraday high of $22.88.

After-hours trading extended the rally with a 12.11% gain, bringing the share price to $23.15. The sharp rise reflects renewed confidence as investors responded positively to the company’s effort to normalize its NAV discount.

ETHZilla remains one of the largest Ethereum treasuries among U.S. public companies. Peter Thiel’s Founders Fund recently acquired a 7.5% stake, signaling institutional support.

SharpLink Gaming, which holds the second-largest ETH treasury, has also announced a $1.5 billion repurchase program, indicating a broader trend. Both firms aim to stabilize stock performance through targeted buybacks backed by digital assets.