ETHZilla, an Ethereum treasury corporation listed on Nasdaq under the ticker ETHZ, has sold approximately $40 million worth of Ether (ETH) to finance its share buyback initiative. The sale was executed on October 24, 2025, as disclosed in a press release, and is part of a strategic effort to enhance shareholder value and narrow the discount between the firm's share price and its net asset value (NAV).
Following the ETH sale, the company repurchased around 600,000 of its ordinary shares for about $12 million. This action falls under a board-approved $250 million buyback authorization plan issued in August, allowing ETHZilla to opportunistically buy back shares when its stock trades below NAV. The company's management, led by Chairman McAndrew Rudisill, emphasized that this will reduce the number of shares outstanding and strengthen the NAV per share.
After the announcement, ETHZilla's stock surged 14.5% during regular trading and climbed an additional 9% in after-hours sessions, reaching over $22.50 per share. Despite this jump, the price remains significantly below the all-time high of $107, achieved when the company first unveiled its Ethereum treasury project. The ETH was sold at around the $3,900 level, and Ethereum's price later fluctuated, rising to $4,280 over the weekend before settling near $4,150.
ETHZilla still holds roughly $400 million in Ether on its balance sheet, meaning the $40 million sale accounted for about 10% of its crypto reserves. This leaves ample room for future buybacks, as the company plans to continue selling ETH and repurchasing shares until the NAV discount is normalized. The move has garnered institutional interest, with Peter Thiel's Founders Fund acquiring a 7.5% stake in ETHZilla in August, highlighting growing confidence in Ethereum-based treasuries.
Analysts noted that ETHZilla's strategy combines DeFi approaches with corporate finance tools, potentially stabilizing market performance and attracting traditional investors seeking crypto exposure with reduced volatility. However, critics warn of risks, such as market timing issues if ETH prices rebound rapidly, raising questions about whether crypto treasuries should focus on long-term holding or short-term equity targets.
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