TLDR ETHZilla sells $40M ETH to fuel stock buybacks and close NAV gap. $12M ETH sale funds 600K-share repurchase amid undervaluation. Activist pressure drives ETHZilla’s bold treasury realignment. Buyback surge lifts ETHZ stock 14.5% and boosts market confidence. ETHZilla balances blockchain vision with sharp capital strategy. ETHZilla Corporation (Nasdaq: ETHZ) surged 14.53% to close at [...] The post ETHZilla Corporation (ETHZ) Stock: 14% Jump After $40M ETH Treasury Sale and Repurchase Plan appeared first on CoinCentral.TLDR ETHZilla sells $40M ETH to fuel stock buybacks and close NAV gap. $12M ETH sale funds 600K-share repurchase amid undervaluation. Activist pressure drives ETHZilla’s bold treasury realignment. Buyback surge lifts ETHZ stock 14.5% and boosts market confidence. ETHZilla balances blockchain vision with sharp capital strategy. ETHZilla Corporation (Nasdaq: ETHZ) surged 14.53% to close at [...] The post ETHZilla Corporation (ETHZ) Stock: 14% Jump After $40M ETH Treasury Sale and Repurchase Plan appeared first on CoinCentral.

ETHZilla Corporation (ETHZ) Stock: 14% Jump After $40M ETH Treasury Sale and Repurchase Plan

2025/10/28 16:36

TLDR

  • ETHZilla sells $40M ETH to fuel stock buybacks and close NAV gap.
  • $12M ETH sale funds 600K-share repurchase amid undervaluation.
  • Activist pressure drives ETHZilla’s bold treasury realignment.
  • Buyback surge lifts ETHZ stock 14.5% and boosts market confidence.
  • ETHZilla balances blockchain vision with sharp capital strategy.

ETHZilla Corporation (Nasdaq: ETHZ) surged 14.53% to close at $20.65 on October 27, following a major treasury decision.

Ethzilla Corp., ETHZ

The company sold approximately $40 million worth of Ethereum from its treasury holdings to fund a large-scale stock repurchase program. This move directly contributed to renewed market momentum and a narrowed discount to net asset value (NAV).

The firm used $12 million of the ETH sale proceeds to acquire around 600,000 shares under its $250 million repurchase plan. ETHZilla confirmed the transactions occurred shortly after the ETH sale on October 24, targeting undervalued common stock. The remaining cash will support further repurchases to enhance per-share NAV and reduce shares outstanding.

ETHZilla aims to reduce the stock loan and borrow activity through these buybacks, which it expects to be immediately accretive. It continues to hold $400 million worth of ETH post-sale, signaling confidence in its digital asset reserve strategy. The company remains committed to converting treasury strength into long-term market value enhancement.

Buyback Strategy Drives NAV Optimization

ETHZilla’s strategy focuses on closing the gap between its stock price and NAV through targeted repurchases using crypto-based liquidity. With shares trading below intrinsic value, the firm leveraged ETH to boost shareholder returns and increase NAV per share. The method emphasizes balance sheet optimization and capital allocation efficiency.

This approach reflects the company’s dual role as a blockchain innovator and active capital manager. By reducing share count, ETHZilla intends to elevate each remaining share’s proportional asset value. The timing of the move aligned with a market opportunity where traditional and decentralized finance intersect.

Increased buying activity followed a period of shareholder pressure to unlock value from the company’s large Ethereum reserves. The stock’s sharp rise post-announcement indicates strong reaction to management’s swift and decisive action. The Board’s repurchase authorization gives room for continued market-responsive execution.

Shareholder Pressure Spurs Decisive Corporate Action

ETHZilla’s move follows recent demands from major shareholders urging the use of ETH reserves for immediate stock value creation. Dimitri Semenikhin, an activist with a 2.2% stake, publicly called for aggressive buybacks to address the NAV discount. His open letter to management gained attention and added urgency to capital deployment strategies.

Management’s response came within days, demonstrating alignment with shareholder expectations and market timing. The ETH sale and repurchase program reflects proactive governance and financial agility in a volatile digital asset landscape. ETHZilla continues to use treasury assets tactically to improve shareholder outcomes.

The post ETHZilla Corporation (ETHZ) Stock: 14% Jump After $40M ETH Treasury Sale and Repurchase Plan appeared first on CoinCentral.

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