Ethereum finance company ETHZilla sells $40 million in ETH to advance $250 million stock buyback plan

ChainCatcher news, according to The Block, Ethereum financial company ETHZilla (code ETHZ) has sold approximately $40 million worth of Ethereum holdings to repurchase shares. The ETHZilla board authorized a stock repurchase plan of up to $250 million in August. Since selling Ethereum on October 24, ETHZilla has spent about $12 million to repurchase approximately 600,000 shares of common stock.

The company stated in a press release on Monday: "ETHZilla plans to use the remaining funds from the sale of Ethereum for additional stock repurchases and intends to continue selling Ethereum to repurchase shares until its stock price discount to net asset value (NAV) returns to normal levels." Chairman McAndrew Rudisill stated that the company will continue to repurchase shares when ETHZ's "stock price is significantly discounted relative to net asset value," which can reduce the number of common shares outstanding and enhance its net asset value valuation. The announcement released on Monday indicated that the company still holds approximately $400 million worth of Ethereum on its balance sheet.