Ethereum-focused treasury company ETHZilla said it has sold roughly $40 million worth of ether to fund ongoing share repurchases, a maneuver aimed at closing what it calls a “significant discount to NAV.” In a press statement on Monday, the company disclosed that since Friday, October 24, it has bought back about 600,000 common shares for approximately $12 million under a broader authorization of up to $250 million, and that it intends to continue buying while the discount persists. ETHZilla Dumps ETH For BuyBacks The company framed the buybacks as balance-sheet arbitrage rather than a strategic retreat from its core Ethereum exposure. “We are leveraging the strength of our balance sheet, including reducing our ETH holdings, to execute share repurchases,” chairman and CEO McAndrew Rudisill said, adding that ETH sales are being used as “cash” while common shares trade below net asset value. He argued the transactions would be immediately accretive to remaining shareholders. Related Reading: Crypto Analyst Shows The Possibility Of The Ethereum Price Reaching $16,000 ETHZilla amplified the message on X, saying it would “use its strong balance sheet to support shareholders through buybacks, reduce shares available for short borrow, [and] drive up NAV per share” and reiterating that it still holds “~$400 million of ETH” on the balance sheet and carries “no net debt.” The company also cited “recent, concentrated short selling” as a factor keeping the stock under pressure. The market-structure logic is straightforward: when a digital-asset treasury trades below the value of its coin holdings and cash, buying back stock with “coin-cash” can, in theory, collapse the discount and lift NAV per share. But the optics are contentious inside crypto because the mechanism requires selling the underlying asset—here, ETH—to purchase equity, potentially weakening the very treasury backing that investors originally sought. Death Spiral Incoming? Popular crypto trader SalsaTekila (@SalsaTekila) commented on X: “This is extremely bearish, especially if it invites similar behavior. ETH treasuries are not Saylor; they haven’t shown diamond-hand will. If treasury companies start dumping the coin to buy shares, it’s a death spiral setup.” Skeptics also zeroed in on funding choices. “I am mostly curious why the company chose to sell ETH and not use the $569m in cash they had on the balance sheet last month,” another analyst Dan Smith wrote, noting ETHZilla had just said it still holds about $400 million of ETH and thus didn’t deploy it on fresh ETH accumulation. “Why not just use cash?” The question cuts to the core of treasury signaling: using ETH as a liquidity reservoir to defend a discounted equity can be read as rational capital allocation, or as capitulation that undermines the ETH-as-reserve narrative. Beyond the buyback, a retail-driven storyline has rapidly formed around the stock. Business Insider reported that Dimitri Semenikhin—who recently became the face of the Beyond Meat surge—has targeted ETHZilla, saying he purchased roughly 2% of the company at what he views as a 50% discount to modified NAV. He has argued that the market is misreading ETHZilla’s balance sheet because it still reflects legacy biotech results rather than the current digital-asset treasury model. Related Reading: Ethereum Emerges As The Sole Trillion-Dollar Institutional Store Of Value — Here’s Why The same report cites liquid holdings on the order of 102,300 ETH and roughly $560 million in cash, translating to about $62 per share in liquid assets, and calls out a 1-for-10 reverse split on October 15 that, in his view, muddied the optics for retail. Semenikhin flagged November 13 as a potential catalyst if results show the pivot to ETH generating profits. The company’s own messaging emphasizes the discount-to-NAV lens rather than a change in strategy. ETHZilla told investors it would keep buying while the stock trades below asset value and highlighted a goal of shrinking lendable supply to blunt short-selling pressure. For Ethereum markets, the immediate flow effect is limited—$40 million is marginal in ETH’s daily liquidity—but the second-order risk flagged by traders is behavioral contagion. If other ETH-heavy treasuries follow the playbook, selling the underlying to buy their own stock, the flow could become pro-cyclical: coins are sold to close equity discounts, the selling pressures spot, and wider discounts reappear as equity screens rerate to the weaker mark—repeat. That is the “death spiral” scenario skeptics warn about when the treasury asset doubles as the company’s signal of conviction. At press time, ETH traded at $4,156. Featured image created with DALL.E, chart from TradingView.com

شركة ETHZilla، التي تركز على إيثريوم، قامت ببيع حوالي 40 مليون دولار من الإيثير لتمويل عمليات إعادة شراء الأسهم، بهدف معالجة خصم كبير على صافي قيمة الأصول (NAV). منذ 24 أكتوبر، قامت الشركة بإعادة شراء حوالي 600,000 سهم عادي مقابل حوالي 12 مليون دولار، مع خطط لمواصلة هذه الاستراتيجية طالما استمر الخصم. يسلط هذا التحرك الضوء على التحديات والاستراتيجيات المستمرة في سوق العملات المشفرة، خاصة بالنسبة للشركات التي تدير الأصول الرقمية.

ETHZilla, una firma de tesorería centrada en Ethereum, ha vendido alrededor de 40 millones de dólares en ether para financiar recompras de acciones, con el objetivo de abordar un descuento significativo en su valor neto de activos (NAV). Desde el 24 de octubre, la empresa ha recomprado aproximadamente 600,000 acciones comunes por unos 12 millones de dólares, con planes de continuar esta estrategia mientras persista el descuento. Este movimiento destaca los desafíos y estrategias en el mercado de criptomonedas, especialmente para las empresas que gestionan activos digitales.

ETHZilla, une société de trésorerie axée sur Ethereum, a vendu environ 40 millions de dollars d'ether pour financer des rachats d'actions, visant à réduire un écart significatif par rapport à sa valeur nette d'inventaire (NAV). Depuis le 24 octobre, la société a racheté environ 600 000 actions ordinaires pour environ 12 millions de dollars, avec l'intention de poursuivre cette stratégie tant que l'écart persiste. Ce mouvement met en lumière les défis et les stratégies en cours sur le marché des cryptomonnaies, en particulier pour les entreprises gérant des actifs numériques.

ETHZilla, an Ethereum-focused treasury firm, has sold around $40 million worth of ether to fund share buybacks, aiming to address a significant discount to its net asset value (NAV). Since October 24, the company has repurchased about 600,000 common shares for approximately $12 million, with plans to continue this strategy as long as the discount remains. This move highlights the ongoing challenges and strategies within the cryptocurrency market, particularly for firms managing digital assets.

First Ethereum Treasury Firm Sells ETH For Buybacks: Death Spiral Incoming?

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