ETHZilla, rebranded from 180 Life Sciences, has authorized the ETHZilla $250 million stock buyback after a brutal stock price plunge. The share repurchase program starts now and targets open‑market purchases to counter expected stock dilution from a convertible shares offering for 74.8 million shares. The ETHZilla $250 million stock buyback is designed to stabilize sentiment and reduce the dilution overhang. Management also highlighted its Ethereum treasury and upcoming staking ETH strategy via Electric Asset Protocol.
Stock price plunge
Shares cratered more than 50% last week as dilution fears surged among retail and institutional traders. The 74.8 million shares filing spooked markets that worried about near‑term supply hitting the tape. Announcing the ETHZilla $250 million stock buyback aims to offset that shock and signal confidence from the board. The company wants to turn panic into a clearer path to recovery.
Share repurchase program
Under the share repurchase program, ETHZilla may buy shares at its discretion on the open market. The ETHZilla $250 million stock buyback runs until the buyback expiration June 30, 2026, unless the cap is reached earlier. The company framed it as a flexible tool against stock dilution and to align with long‑term holders. Execution speed and transparent disclosures will be key to rebuilding trust.
Ethereum treasury and yield
Parallel to the equity move, the firm expanded its Ethereum treasury to deepen its crypto strategy. It plans on staking ETH using Electric Capital’s Electric Asset Protocol to earn yield while holding core assets. Management said the ETHZilla $250 million stock buyback complements this on‑chain plan by anchoring equity value. That dual track could appeal to investors aligned with ETH fundamentals and cash‑flow discipline.
Working capital funding
ETHZilla expects to fund the effort with working capital funding and, if needed, future financing. The board referenced prior strategic backing, including a Peter Thiel investment, as proof of long‑term vision and governance. The ETHZilla $250 million stock buyback will likely roll out in phases to manage liquidity and market impact. Investors should watch daily volumes, treasury updates, and staking rewards disclosures.
Buyback expiration June 30, 2026
Timelines are clear, but outcomes depend on consistent execution and market tone. If the ETHZilla $250 million stock buyback accelerates during weakness, it could dampen volatility and steady the tape. If it lags, the overhang from the convertible shares offering may persist longer than bulls expect. Clear updates on purchases and ETH yield will guide whether confidence returns.
Frequently asked questions about ETHZilla $250 million stock buyback (FAQ)
Q: What triggered the ETHZilla $250 million stock buyback?
A: A sharp stock price plunge followed the filing to offer 74.8 million convertible shares. The buyback targets stock dilution fears and signals confidence from management.
Q: How will ETHZilla fund the buyback?
A: The company plans working capital funding and may pursue future raises. This supports the ETHZilla $250 million stock buyback without disrupting operations.
Q: How does the Ethereum treasury strategy fit in?
A: ETHZilla aims to stake ETH via Electric Capital’s Electric Asset Protocol to earn yield. That complements equity support while building an on‑chain cash‑flow engine.
Q: When does the authorization end?
A: The program’s buyback expiration is June 30, 2026, or earlier if the $250 million cap is reached.
Q: What are the key risks to monitor?
A: Execution risk, market liquidity, and timing versus the convertible shares offering are top concerns. Transparent reporting on repurchases and staking results will be decisive.
