Ethereum News Today: ETHZilla's ETH Sales Fund Buybacks as Crypto Community Debates Value vs. Price Risk

ETHZilla Corporation (Nasdaq: ETHZ) has sold $40 million in Ethereum (ETH) to fund a share buyback program, aiming to narrow the gap between its stock price and net asset value (NAV). The company repurchased approximately 600,000 shares for $12 million since October 24 under its $250 million repurchase plan, signaling a strategic shift to leverage its balance sheet strength, according to a Marketscreener report. CEO McAndrew Rudisill emphasized that the move is "immediately accretive," as shares trade at a significant discount to NAV, and the firm intends to continue selling ETH to repurchase shares until the discount normalizes, per a Yahoo Finance report. ETHZilla retains $400 million in ETH post-sale, maintaining one of the largest Ethereum treasuries among public firms, according to a CoinMarketCap article.

The stock price surged 14.5% to close above $22.50 on October 27, extending a rebound that began late last week, as noted in a The Block report. The move follows pressure from shareholders, including activist investor Dimitri Semenikhin, who urged management to deploy Ethereum reserves for buybacks to unlock value, according to a crypto.news report. Semenikhin's open letter preceded the announcement, highlighting the company's underutilization of its NAV advantage. That report also noted the strategy aligns with broader industry trends, as rival digital asset treasuries like SharpLink Gaming (SBET) have approved multi-billion-dollar buyback programs.

The company's approach has sparked debate within the crypto community. While proponents argue that repurchasing undervalued shares boosts NAV per share and reduces short-selling activity (as previously reported by Yahoo Finance), skeptics warn of a potential "death spiral" if continued ETH sales depress the asset's price, as discussed in a TradingView piece. The sale occurred as Ethereum traded near $3,900, subsequently rising to $4,250, a timing detail that has drawn scrutiny in later coverage. ETHZilla's board reiterated its commitment to balancing treasury strength with shareholder value, citing no net debt and a diversified strategy that includes tokenization and DeFi protocol integration, as noted earlier.

ETHZilla's move reflects growing pressure on crypto-focused firms to stabilize valuations amid market volatility. With shares trading at a 30% discount to NAV as of October 2025 (per the Yahoo Finance coverage), the company's aggressive buyback plan aims to realign market perceptions with its underlying asset holdings. The strategy also addresses concerns about share dilution and liquidity, as reduced outstanding shares could enhance NAV per share and investor confidence, according to an FXStreet report.