Ethereum News Update: ETHzilla’s Move to Wall Street Triggers DeFi Identity Dilemma

ETHzilla Corporation (Nasdaq: ETHZ) has ignited widespread discussion within both the cryptocurrency and financial industries after offloading $40 million worth of

(ETH) to support a share repurchase initiative. This approach highlights the company’s shift toward more conventional financial tactics as the crypto-treasury stock model undergoes increased scrutiny, according to . The DeFi-focused company, which transitioned from 180 Life Sciences earlier this year, has bought back around 600,000 shares for $12 million since October 24, utilizing its $400 million ETH reserves to narrow the gap between its share price and net asset value (NAV), as reported by . CEO McAndrew Rudisill stated that the buyback is designed to "immediately increase" NAV per share and limit stock lending and borrowing, a tactic that has contributed to a 32% surge in shares this week, according to the .com report.

The ETH sale follows a controversial 1-for-10 reverse stock split on October 20 and the hiring of John D. Kristoff as Senior Vice President of Corporate Communications and Investor Relations, as highlighted in

. Kristoff’s appointment, along with these structural adjustments, marks ETHZilla’s move toward a Wall Street-style approach to investor relations—a direction some critics say undermines its original DeFi principles. Social media users mocked the strategy, with one remarking, "ETHZILLA goes full Wall Street. Decentralized ... kinda," pointing out the irony of a crypto company focusing on stock liquidity rather than blockchain progress, as noted by Bitcoin.com.

ETHZilla’s recent moves come as the overall crypto-treasury stock strategy faces mounting challenges. Once celebrated in 2025, the practice—where firms like MicroStrategy and

amass large crypto holdings—now appears risky as token values drop and stock prices remain high. More than a quarter of publicly traded companies with crypto reserves are now valued below their digital asset portfolios, raising the risk of a "death spiral" where companies may be compelled to liquidate assets to meet expenses, according to . ETHZilla’s $40 million ETH sale, while breaking from the "hold forever" mentality of crypto enthusiasts, reflects the current unstable environment.

The company’s financial outlook is mixed. Despite holding $400 million in ETH, ETHZilla reported zero revenue last quarter and an earnings per share of -150.7, underscoring its pre-revenue phase, as noted by GuruFocus. Its $250 million buyback plan, financed through asset sales, has yet to yield profits but has improved short-term cash flow. Additionally, the company revealed a partnership with Liquidity.io, investing $15 million for a 15% equity stake in the digital asset platform to further real-world asset securitization—an indication of its ongoing DeFi interests, according to

.

Experts remain split on ETHZilla’s future. While the company positions itself as a connector between traditional finance and DeFi, its stock’s recent volatility—up 17.38% on October 24—shows persistent doubts about its ability to generate revenue from its blockchain infrastructure, as observed by SimplyWall. With crypto prices still below their highs and regulatory questions unresolved, ETHZilla’s efforts to juggle crypto treasury management and stock market tactics will be closely monitored as an indicator of the sector’s resilience.