ETHZilla Plans 1-for-10 Reverse Stock Split to Boost Share Price
ETHZilla, an Ethereum-focused finance firm, will execute a 1-for-10 reverse stock split on October 20 to reduce its outstanding shares by 90% and raise its share price above $10. Approved at a July 24 meeting, the move aims to meet minimum share price requirements for large mutual funds and improve collateral for margin trading. Shares fell over 7% to about $1.77 on the announcement. ETHZilla, rebranded from 180 Life Sciences and backed by Founders Fund, said the reverse stock split is part of a broader strategy to attract institutional investors and is not related to listing requirements. Traders will watch its impact on market cap, liquidity and investor confidence.
Neutral
A reverse stock split adjusts share count without altering ETHZilla’s fundamentals, so it is unlikely to directly affect Ethereum’s market price. The immediate 7% share drop reflects short-term seller pressure, while the strategy to meet institutional price thresholds could boost long-term liquidity and stability. Overall, short-term downside and potential long-term benefits balance out, resulting in a neutral outlook.