Ethereum News Today: ETHZilla Uses ETH Sales to Narrow Stock's Deep Discount to NAV

Ethereum treasury firm ETHZilla has sold approximately $40 million worth of ether (ETH) to fund a $250 million share repurchase program, marking a strategic move to reduce its stock's discount to net asset value (NAV) and boost investor confidence, according to The Block. The company, which rebranded from 180 Life Sciences Corp., has already repurchased 600,000 shares for $12 million since the initial ETH sale on October 24, according to Stocktitan. Chairman McAndrew Rudisill emphasized that the firm will continue selling ETH to repurchase shares until the discount to NAV is "normalized," according to Bitcoinsistemi. ETHZilla currently holds around $400 million in ETH on its balance sheet, with proceeds from future sales earmarked for additional buybacks, The Block reports.

The repurchase plan aligns with broader trends in the Ethereum treasury sector. Competitor SharpLink Gaming (SBET) recently expanded its own holdings, acquiring 19,271 ETH worth $78.3 million to bolster its treasury to over $3.6 billion in ETH, reflecting institutional confidence in Ethereum as a strategic reserve asset, according to crypto.news. ETHZilla's move also follows a $15 million partnership with Satschel, granting it a 15% equity stake and exclusive rights in regulated digital asset markets, according to Simply Wall St. Simply Wall St notes this collaboration has driven a 17.38% surge in ETHZ's share price over the past day, though the stock remains down 58% year-to-date.

Rudisill's comments highlight a key challenge for ETHZilla: its shares trade at a significant discount to NAV. The firm's stock closed at $22.50 on Tuesday, far below its 2025 high of $107, when it first announced the Ethereum treasury initiative, The Block reports. By reducing the number of shares outstanding, ETHZilla aims to increase its NAV per share, a strategy Peter Thiel's Founders Fund has backed through its 7.5% stake in the company, The Block also said.

The stock repurchase program, approved in August, remains active as ETHZ's share price fluctuates. While the company has repurchased shares at a cost of $12 million to date, it has $238 million remaining in its authorization, Stocktitan reports. Analysts note that ETHZ's price-to-book ratio of 53.7x is significantly higher than industry peers, indicating aggressive market expectations, and persistent losses and limited revenue growth could pose risks to this bullish narrative, according to Simply Wall St.