Overview
- ETHZilla confirmed it sold roughly $40 million of ETH on Oct. 24 and has repurchased about 600,000 shares for approximately $12 million under its board-approved authorization.
- The buyback is part of a $250 million program, with management saying purchases are accretive while the stock trades below net asset value.
- The firm still holds about $400 million in ETH and says it will continue sales to fund repurchases until the discount to NAV is normalized.
- Shares jumped roughly 14.5% in Monday trading and gained further after hours following disclosure of the sale and initial buybacks.
- Activist investor Dimitri Semenikhin had urged the company to deploy its ETH reserves for buybacks, and analysts note similar moves by other treasuries could add selling pressure to ETH.