'Ethereum hoarder' ETHZilla sells $40 million worth of Ethereum to fund share buybacks

The cryptocurrency hoarder ETHZilla sold Ethereum (ETH) it held to raise funds for share buybacks.

On the 28th (Korean time), according to CoinCu, ETHZilla, with board approval, sold $40 million worth of Ethereum to raise funds for share buybacks. ETHZilla said, "Already $12 million of the proceeds from the Ethereum sale have been used for share buybacks." Even after the sale, ETHZilla's Ethereum holdings amount to about $400 million.

The sale is a measure to mitigate the stock trading at a discount to net asset value (NAV). ETHZilla explained, "We will continue selling ETH until the NAV gap narrows."

McAndrew Rudisill, chair of ETHZilla's board, said, "Through share buybacks we will reduce the number of issued shares and increase net asset value per share," adding, "We also expect a short-selling limiting effect."

Immediately after the announcement, ETHZilla's stock closed at $20.65 on the 27th (local time), up 14.53% from the previous day.