Summary
- 'ETHzilla' reportedly sold about $40 million worth of Ethereum to raise funds for a share buyback.
- It said the remaining proceeds from the sale of held ETH will be used for additional share buybacks and that it plans to continue purchases as long as its shares are discounted relative to net asset value (NAV).
- 'ETHzilla' stock rose 14.5%%, and it said Peter Thiel's Founders Fund holds a 7.5%% stake in the company.
Ethereum (ETH) treasury company 'ETHzilla' sold approximately $40 million worth of Ethereum to raise funds for a share buyback.
On the 28th (local time), The Block reported that the ETHzilla board sold 40 million Ethereum as part of the $250 million share buyback program approved last August. It added, "the remaining proceeds from the sale of held ETH will be used for additional share buybacks, and it plans to continue purchases as long as the company's shares trade at a large discount to net asset value (NAV)."
According to Google Finance that day, ETHzilla's stock closed up 14.5% intraday, and at the time of reporting was up an additional 9%, topping $22.50. That is about one-fifth of the peak (about $107) at the time of the fundraising announcement earlier this year.
ETHzilla currently holds about $400 million worth of Ethereum, and Peter Thiel's Founders Fund acquired a 7.5% stake in the company last August.
Meanwhile, SharpLink Gaming (SBET), the second-largest Ethereum treasury holder, also approved a share buyback program and plans to carry out up to $1.5 billion in purchases if its shares trade below crypto net asset value.
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
