ETHZilla reduced its ETH holdings to fund $12 million in repurchases since October 24, aiming to narrow a steep discount to NAV while retaining $400 million in Ethereum reserves.
ETHZilla announced it sold approximately $40 million worth of ether to finance ongoing share buybacks under a $250 million repurchase authorization. Since October 24, the company has bought back about 600,000 common shares for $12 million, citing a significant discount to net asset value (NAV) and recent concentrated short selling as key drivers. CEO McAndrew Rudisill emphasized this is balance-sheet arbitrage using ETH as liquidity rather than a strategic exit from Ethereum holdings. ETHZilla retains roughly $400 million in ETH and $560 million in cash, with no net debt. Market reaction is mixed, with some traders warning of a potential 'death spiral' if other ETH-heavy treasuries replicate the strategy.