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ETHZilla Shares Surge As Company Sells Ethereum To Buy Its Own Stock - ETHZilla (NASDAQ:ETHZ)
ETHZilla aims to reduce stock discount to net asset value by using $40 million ETH sale proceeds for part of a $250 million buyback, repurchasing 600,000 shares.
- On Oct. 24, ETHZilla sold about $40 million of ether from its treasury, repurchasing around 600,000 shares for roughly $12 million under its $250 million buyback plan.
- ETHZilla cratered as much as 90% from its August peak and traded at a 30% discount to its NAV, planning to sell more ETH until the discount is normalized amid pressure on digital asset treasuries.
- ETHZilla held about $400 million of ETH as of Monday, with sales near $3,900, and Rudisill said `by opportunistically repurchasing shares...`
- In after-hours trading, ETHZilla shares surged about 12%, trading near $22.85 after trading between $22.87 and $19.57 on Monday.
- The company plans to continue repurchases with remaining proceeds from the ETH sale, leveraging its balance sheet as ETHZilla’s stock sits about 42.7% above its 52-week low.
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The Ether (ETH) treasury company is looking for ways to address the current stock market crisis. Read more
ETHZilla has sold for 40 million dollars of ETHEREUM in order to finance a massive share buyback program of 250 million dollars, aimed at closing the gap between its stock market valuation and the value of its assets. The ETHZ security has jumped by more than 23% after the announcement, but remains still far from its historical peak of 107 dollars. Despite this sale, ETHZilla retains nearly 400 million dollars of ETH and imposes itself as a majo…
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Total News Sources22
Leaning Left0Leaning Right1Center2Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
C 67%
R 33%
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