This Ethereum Treasury Stock Is Rising Following Beyond Meat Investor’s Backing

Core Insights - Shares in Ethereum treasury firm ETHZilla (ETHZ) surged 14% on Monday, continuing gains from the previous week, driven by interest from a meme stock influencer associated with Beyond Meat (BYND) [1] - Dimitri "Capybara Stocks" Semenikhin, who previously influenced BYND's price spike, has acquired approximately 2.2% of ETHZ's shares and is advocating for changes within the firm [2] - Semenikhin highlighted that ETHZilla's multiplier on net assets was at an all-time low of 50% at the time of his purchase, indicating a significant discount compared to other digital treasuries [2] Company Actions - Semenikhin published an open letter urging ETHZilla's management to utilize its share buyback program more effectively, noting the abnormality of his ability to acquire a large position at a discount to net asset value [3] - In August, ETHZilla announced a $250 million share buyback program aimed at enhancing shareholder value, and Semenikhin is now pushing for the firm to sell some of its Ethereum holdings to fund share repurchases [4] - Following Semenikhin's letter, ETHZilla sold Ethereum and repurchased approximately $40 million worth of shares, with plans to continue repurchases as its market net asset value (mNAV) trades below 1 [4] Financial Position - ETHZilla's chairman and CEO, McAndrew Rudisill, stated that the firm is leveraging its balance sheet strength, including reducing ETH holdings, to execute share repurchases [5] - As of the recent sale, ETHZilla held approximately 102,916 ETH, valued around $434 million, and after the sale, it retains about $400 million in ETH [5]