ETHZilla Sells $40M ETH to Fund Stock Buyback and Narrow NAV Discount
Crypto asset manager ETHZilla sold $40 million of Ethereum (ETH) on October 24 to fund a board-approved stock buyback of about 600,000 shares. The move aims to narrow the steep NAV discount after ETHZilla’s share price fell from over $100 in August to under $25. Following the sale, ETHZilla shares jumped 14.5% on the day and gained another 12% in after-hours trading. ETHZilla framed this as a disciplined capital-allocation strategy, highlighting its flexibility to convert crypto assets into cash amid volatile markets.
Traders are now watching the pace of ETHZilla’s ETH sales and any changes in the NAV discount. Global rival SharpLink Gaming (SBET) has a $1.5 billion buyback plan ready if its NAV gap widens, while BitMine bought 77,000 ETH in the same period, signaling bullish sentiment. Key indicators for crypto traders include on-chain liquidity, ETF inflows, 3–5% staking yields, and macro factors such as Fed rate decisions and trade negotiations. The interplay between treasury sales and share repurchases could influence ETH supply and price dynamics in both the short and long term.
Neutral
ETHZilla’s $40 million ETH sale could add short-term selling pressure, but the simultaneous stock buyback and disciplined capital-allocation framing support market sentiment. The amount is modest versus daily ETH volumes, limiting price impact. If more firms follow with similar sell-to-buyback strategies, supply could rise and weigh on ETH. Conversely, recurring buyback programs may sustain demand. Macro factors like ETF inflows and staking yields add further complexity, suggesting a balanced outlook for ETH price in both the near and longer term.