ETHZilla Sells $40 Million in Ether to Fund Stock Buyback Program

TLDR

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ETHZilla sold $40 million in ETH to repurchase 600,000 shares at $20 each.
The company aims to align its stock price with net asset value through buybacks.
ETHZilla’s strategy marks a shift in using crypto reserves for corporate finance.
A 14.5% stock price surge followed ETHZilla’s announcement of the buyback plan.

ETHZilla, a Nasdaq-listed company that holds substantial Ethereum reserves, made a significant move on October 24, 2025, by selling approximately $40 million worth of Ether. The sale, which involved the liquidation of around 11,900 ETH, is part of the company’s strategy to fund a stock buyback program aimed at closing the gap between its stock price and net asset value (NAV). The decision comes as part of a broader effort to restructure and create long-term shareholder value.

Use of Proceeds for Stock Repurchase Program

ETHZilla’s sale of $40 million in Ethereum allowed the company to repurchase approximately 600,000 shares at an average price of $20 per share. This buyback is part of a larger $250 million program designed to boost the company’s stock price by aligning it more closely with its NAV. The management views this as an opportunity to reduce share price volatility and restore investor confidence.

The stock repurchase, which saw a 14.5% increase in share price on the day of the announcement, reflects management’s confidence in the company’s fundamentals. “The buyback program is a demonstration of our commitment to enhancing shareholder value and providing returns to our investors,” an ETHZilla spokesperson stated.

ETHZilla’s Strategy for Using Crypto Reserves

Unlike other companies that passively hold crypto assets, ETHZilla is taking a more active approach by liquidating its Ethereum holdings to generate capital for its share repurchase program. The firm’s move to use its crypto assets to finance traditional stock buybacks marks a shift in corporate treasury management. Other companies, such as MicroStrategy with its Bitcoin reserves, have also used similar strategies.

ETHZilla’s use of Ethereum as a financial resource is positioning it as a leader in the new frontier of corporate crypto treasuries. This approach allows the company to balance the risk of market fluctuations while simultaneously supporting its stock price. As ETHZilla continues to sell Ethereum to fund stock buybacks, it hopes to further integrate digital assets into corporate finance strategies.

Risks and Considerations of ETHZilla’s Move

While the sale of Ethereum helped boost the company’s stock price, it also exposed ETHZilla to risks if Ethereum’s market value weakens. Ethereum has seen a recent decline of about 13% in value over the past week, and some analysts warn that a further drop could affect the viability of the company’s buyback program.

Despite these risks, ETHZilla remains confident in its approach. “We are focused on long-term value creation and are prepared to continue with the buyback plan as long as the market conditions remain favorable,” the company stated. The company’s decision to sell ETH during a period of market volatility reflects its willingness to prioritize short-term shareholder returns while accepting the potential for fluctuations in Ethereum’s value.

ETHZilla’s Position in Corporate Crypto Finance

ETHZilla’s strategy marks a turning point in how corporations use digital assets as part of their financial management. By leveraging its Ethereum reserves, ETHZilla is pushing the boundaries of traditional corporate finance. This move signals a shift towards a new model for publicly traded companies that integrate cryptocurrency as an active resource for capital management.

As more companies explore the potential of digital assets, ETHZilla’s approach could influence others in the industry. It also underscores the growing importance of corporate crypto treasuries and the need for businesses to find innovative ways to manage their balance sheets in an increasingly digital economy.