ETHZilla sells $40 million in ETH to fund share repurchases

PALM BEACH - ETHZilla Corporation (NASDAQ:ETHZ), currently trading at $20.65 with a market capitalization of $334 million, has sold approximately $40 million of its Ethereum holdings to fund stock repurchases, the company announced Monday. According to InvestingPro data, the stock’s RSI indicates oversold conditions, suggesting potential buying interest.

The technology company, which connects traditional finance with decentralized finance, has already repurchased about 600,000 shares of its common stock for approximately $12 million since executing the sale on October 24. These repurchases were made under the company’s existing $250 million stock repurchase program authorized by its board. With a current ratio of 0.58 and a high Price/Book ratio of 50.97, InvestingPro analysis indicates the company’s financial health score remains weak at 1.61.

"We are leveraging the strength of our balance sheet, including reducing our ETH holdings, to execute share repurchases," said McAndrew Rudisill, chairman and chief executive officer of ETHZilla.

The company plans to use the remaining proceeds from the ETH sale for additional share repurchases and intends to continue selling ETH to buy back shares until what it describes as a "discount to NAV is normalized."

According to the company, ETHZilla continues to maintain approximately $400 million of ETH on its balance sheet to support future strategic initiatives.

ETHZilla Corporation describes itself as a technology company in the decentralized finance industry that enables secure blockchain transactions through Ethereum Network protocol implementations.

The information in this article is based on a press release statement from ETHZilla Corporation.

In other recent news, ETHZilla Corporation has announced a strategic partnership with Liquidity.io, a broker-dealer and Digital Alternative Trading System operator. This partnership involves ETHZilla investing $15 million in Satschel, Inc., Liquidity.io’s parent company, which includes $5 million in cash and $10 million in equity, giving ETHZilla a 15% ownership stake. Additionally, ETHZilla plans to conduct a 1-for-10 reverse stock split effective October 20, 2025, reducing its outstanding shares from approximately 160 million to 16 million. This move is intended to adjust the number of shares available in the market without changing the company’s trading symbol.

In another development, ETHZilla has appointed Jason New, Vice Chairman of Investment Banking at Lazard, to its Board of Directors. New brings extensive experience in global credit, private equity, and alternative investments. Furthermore, ETHZilla plans to deploy $47 million worth of Ether to Puffer, a liquid restaking protocol, aiming to enhance yields on its ETH treasury holdings. These recent developments indicate ETHZilla’s ongoing efforts to strengthen its strategic and financial position.

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