ETHZilla authorizes $250 million stock buyback, holds 102,237 ETH

PALM BEACH, Fla. - ETHZilla Corporation (NASDAQ:ETHZ), currently trading at $3.30 per share with a market capitalization of $515 million, announced Monday its board has authorized a stock repurchase program of up to $250 million of its outstanding common shares, effective immediately. According to InvestingPro data, the stock has experienced significant volatility, falling 55% in the past week despite a strong 168% gain over the last six months.

The cryptocurrency-focused company also reported it now holds 102,237 Ethereum (ETH) tokens acquired at an average price of $3,948.72, currently valued at approximately $489 million. Additionally, ETHZilla maintains approximately $215 million in cash equivalents. InvestingPro analysis indicates the company operates with a moderate debt level, with a debt-to-equity ratio of 0.26, though its current ratio of 0.58 suggests short-term obligations exceed liquid assets.

The stock repurchase program will run through June 30, 2026, unless the maximum repurchase amount is reached earlier or the board discontinues the program. Shares may be repurchased through open market transactions or negotiated deals at prevailing market rates, in accordance with federal securities laws.

"As we continue to scale our ETH reserves and pursue differentiated yield opportunities, we believe an aggressive stock repurchase program at the current stock price underscores our commitment to maximizing value for shareholders," said McAndrew Rudisill, Executive Chairman of ETHZilla.

The company plans to stake its recently acquired ETH using Electric Capital’s proprietary Electric Asset Protocol to generate yield. ETHZilla has been rapidly building its ETH position, adding 7,600 ETH in the most recent week to reach its current holdings.

The repurchase program will be funded using the company’s working capital and proceeds from "at-the-market" offerings or other future financings. According to the announcement, ETHZilla issued 3.3 million shares through its ATM program, generating $20.9 million in net proceeds during the most recent reporting period.

ETHZilla describes itself as developing an accumulation vehicle for Ether that aims to become a benchmark for on-chain treasury management among public companies.

This announcement was made in a company press release.

In other recent news, 180 Life Sciences Corp, now operating as ETHZilla, announced a significant development in its financial strategy. The company revealed it holds 82,186 Ethereum tokens, valued at approximately $349 million, alongside $238 million in USD cash equivalents, enhancing its treasury to nearly $587 million. This strategic move follows the company’s successful closing of a $425 million private placement to support its Ethereum treasury strategy, with contributions from notable investors such as Electric Capital and Harbour Island. Additionally, 180 Life Sciences raised $156 million through the issuance of senior secured convertible notes due in 2028, with the proceeds intended primarily for Ethereum purchases.

In another development, the company disclosed a potential $500 million share sale agreement under an "at-the-market" offering program with Clear Street LLC. This agreement allows 180 Life Sciences to sell shares in negotiated transactions or as part of the market offering. These recent developments reflect the company’s strategic shift towards cryptocurrency, particularly Ethereum, as a core component of its financial planning.

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