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Ethereum News Update: ETHZilla Utilizes ETH Transactions to Reduce the Stock’s Significant NAV Discount

Ethereum News Update: ETHZilla Utilizes ETH Transactions to Reduce the Stock’s Significant NAV Discount

Bitget-RWA2025/10/27 20:58
By:Bitget-RWA

- ETHZilla sells $40M ETH to fund $250M buyback, aiming to reduce stock discount to NAV. - The firm has repurchased 600,000 shares for $12M since October 24, with $238M remaining. - A partnership with Satschel boosted ETHZ's share price by 17.38% but remains down 58% YTD. - Analysts warn of risks due to high price-to-book ratio and persistent losses.

Ethereum treasury company

has recently sold about $40 million in ether (ETH) to support a $250 million stock buyback initiative, a move intended to narrow the gap between its share price and net asset value (NAV) and strengthen investor trust, as reported by . Formerly known as 180 Life Sciences Corp., the firm has already spent $12 million to buy back 600,000 shares since it began selling ETH on October 24, according to . Chairman McAndrew Rudisill stated that ETH sales will continue to fund share repurchases until the NAV discount is "normalized," as cited by . ETHZilla currently holds roughly $400 million in ETH, with future sales proceeds set aside for more buybacks, The Block noted.

This buyback effort reflects a broader pattern within the

treasury landscape. Rival SharpLink Gaming (SBET) recently boosted its reserves by acquiring 19,271 ETH valued at $78.3 million, bringing its total ETH holdings to over $3.6 billion and signaling strong institutional faith in Ethereum as a reserve asset, according to . ETHZilla's actions also come after a $15 million deal with Satschel, which gave it a 15% ownership stake and exclusive access to regulated digital asset markets, according to . Simply Wall St reports that this partnership led to a 17.38% jump in ETHZ's share price in the last day, though the stock is still down 58% for the year.

Ethereum News Update: ETHZilla Utilizes ETH Transactions to Reduce the Stock’s Significant NAV Discount image 0

Rudisill pointed out a major issue for ETHZilla: its shares are trading well below their NAV. The stock ended Tuesday at $22.50, a sharp drop from its 2025 peak of $107, which was reached when the Ethereum treasury plan was first revealed, The Block said. By cutting the number of shares in circulation, ETHZilla hopes to lift its NAV per share—a strategy supported by Peter Thiel's Founders Fund, which owns a 7.5% stake, according to The Block.

The buyback program, which received approval in August, is still ongoing as ETHZ's share price remains volatile. So far, the company has spent $12 million on repurchases, leaving $238 million authorized for future buybacks, Stocktitan reports. Analysts highlight that ETHZ's price-to-book ratio of 53.7x is much higher than its industry counterparts, suggesting high market expectations, but ongoing losses and slow revenue growth could challenge this optimistic outlook, according to Simply Wall St.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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