Ether Treasury Firm ETHZilla Sold $40M ETH to Fund Share Buyback Amid Discount to NAV

Core Insights - ETHZilla sold approximately $40 million worth of ether (ETH) from its treasury and has initiated a share repurchase program as part of a $250 million buyback plan [1][2] - The firm plans to continue selling ETH to fund further buybacks until the discount to net asset value (NAV) is normalized, currently holding around $400 million in ETH [2][5] - Following the buyback announcement, ETHZ shares experienced a significant rally, increasing by 14.5% on Monday and an additional 12% in after-hours trading [4] Group 1 - The company repurchased around 600,000 shares for approximately $12 million since the sale on October 24 [1] - The recent ETH sales occurred around the $3,900 mark, with ETH prices rising to $4,250 before settling at $4,150 [3] - The repurchase strategy aims to reduce the number of shares available for stock loan/borrow activity, thereby increasing NAV per share [6] Group 2 - The digital asset treasury sector is under pressure, with many stocks trading below their NAV due to significant price declines over recent months [5] - ETHZ's stock has dropped as much as 90% from its peak in August and is currently trading at a 30% discount to NAV [5] - The chairman and CEO emphasized the importance of opportunistically repurchasing shares while trading below NAV to enhance shareholder value [6]