Ethereum News Today: ETHZilla Sells $40M ETH to Narrow Stock-NAV Discount

ETHZilla Corporation (Nasdaq: ETHZ), a technology firm bridging traditional finance and decentralized finance, has sold $40 million in Ethereum (ETH) treasury holdings to fund a share repurchase program, aiming to narrow the discount between its stock price and net asset value (NAV), according to a MarketScreener report. The company has already repurchased approximately 600,000 shares for $12 million under its $250 million board-approved buyback plan since Oct. 24, 2025, according to Investing.com. CEO McAndrew Rudisill emphasized that the strategy leverages the firm's balance sheet strength to "immediately accretive" repurchases while shares trade below NAV, a point later reported by Investing.com. The remaining proceeds will continue to fund buybacks until the NAV discount normalizes, according to Benzinga.

ETHZilla holds roughly $400 million in ETH post-sale, positioning it as the fifth-largest publicly traded Ethereum treasury, FXStreet reported. The move comes as the stock trades at a 30% discount to NAV, according to a Yahoo Finance article summarizing Blockworks data. Rudisill stated the buybacks will reduce shares available for stock loan/borrow activity while boosting NAV per share, as previously noted by Investing.com. The stock surged 14.5% in regular trading and an additional 9–12% in after-hours sessions following the announcement, though it remains far below its $107 peak, according to Crypto Economy.

The firm's actions align with broader industry pressures on crypto treasuries, many of which trade below their underlying asset values, Blockonomi reported. Competitor BitMine Immersion Technologies, now the largest Ethereum treasury with $13.4 billion in crypto and cash holdings, including 3.24 million ETH, recently expanded its stash by acquiring 203,826 ETH. Meanwhile, ETHZilla's strategic partnership with Satschel, Inc.—giving it a 15% stake in the parent company of Liquidity.io—highlights its push into tokenized real-world assets, as described by Blockonomi.

Analysts note ETHZilla's high Price/Book ratio of 50.97 and weak financial health score of 1.61, observations first reported by Investing.com, though the company's liquidity and NAV-focused strategy could stabilize its valuation. The buyback program mirrors approaches by peers like SharpLink Gaming, which approved a $1.5 billion repurchase plan, a point also discussed by Blockonomi. Institutional backing, including Peter Thiel's Founders Fund acquiring a 7.5% stake in August, underscores confidence in the firm's hybrid model of crypto liquidity and equity management, as reported earlier by Crypto Economy.

With Ethereum's price recovering 3.58% weekly, ETHZilla's timed sales—executed around $3,900 per ETH—position it to capitalize on volatility while preserving long-term treasury value. The firm's disciplined approach, selling only 10% of its reserves, aims to balance short-term gains with strategic holdings.