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ETHZilla Sells $40 Million in Ether to Fund Buybacks, Shares Jump

Management is using crypto reserves to target a steep NAV discount through ongoing buybacks.

Overview

  • ETHZilla disclosed that it sold roughly $40 million of ETH on Oct. 24 and has repurchased about 600,000 shares for approximately $12 million.
  • The repurchases fall under a $250 million authorization, and the company says it will keep selling ETH to finance buybacks until its discount to NAV narrows.
  • The firm reported holding about $400 million in ETH after the initial sale.
  • Shares rallied by double digits in late trading following the buyback update, according to market data.
  • ETHZilla’s stock had traded near a 30% discount to NAV and was down as much as about 90% from its August peak, reflecting broader pressure on crypto-treasury stocks.