Ethereum Treasury ETHZilla Announces $250 Million Buyback Following Stock Plunge

ETHZilla Corporation—a publicly traded Ethereum treasury firm formerly called 180 Life Sciences—announced on Monday that its board has approved a stock buyback program of up to $250 million for the company’s outstanding shares, effective immediately.

This decision follows a significant decline in the firm’s stock price last week. ETHZilla, listed on the Nasdaq under ETHZ, has fallen more than 53% this week to a current value of $3.18, following a surge that tripled the stock’s worth after billionaire VC Peter Thiel invested in the company.

The price drop last week followed the company’s filing with the SEC on Friday to offer 74.8 million convertible shares, part of an agreement reached on August 8. This filing raised concerns about dilution, as the total outstanding shares are expected to increase from 164.4 million to over 239.2 million.

ETHZ stock fell nearly 3.8% today after the buyback announcement. The ongoing stock decline has made ETHZ give up most recent gains, showing a rise of less than 5% over the past month.

Based in Palm Beach, Florida, the company also reported holding 102,237 ETH at an average acquisition price of $3,948.72, amounting to roughly $474 million as of now. The firm also possesses about $215 million in cash equivalents, including 7,600 ETH acquired over the previous week.

“At ETHZilla, we remain committed to deploying capital to accelerate our Ethereum treasury strategy effectively,” said ETHZilla Executive Chairman McAndrew Rudisill in a release. “As we scale our ETH reserves and explore unique yield opportunities, we believe our aggressive stock repurchase initiative at the current stock price reflects our dedication to maximizing shareholder value.”

ETHZilla intends to stake its recently acquired Ethereum tokens in Electric Capital’s proprietary Electric Asset Protocol to generate yield, as stated by the company.

The stock repurchase program is set to conclude by June 30, 2026, or when $250 million in shares have been repurchased. The initiative will be financed through working capital and potential future fundraising.

The price of Ethereum reached a record high Friday for the first time in almost four years and continued climbing higher on Sunday, hitting a new peak of $4,946 per CoinGecko data. However, it has seen a decline of over 4% in the last 24 hours, dropping to approximately $4,604 as the overall crypto market faces pressures.

Despite the recent downturn, Myriad users are optimistic that ETH will reach new heights and exceed the $5,000 mark before the end of 2025, with 86% of users forecasting this outcome. (Disclaimer: Myriad Markets is a product of Decrypt‘s parent company, DASTAN.)