ETHZilla, a new Ethereum treasury company, hopes to increase its stock price through a large-scale buyback.
You can read more about it here:
- ETHZilla has announced a stock buyback of $250M to increase its share value
- The firm holds approximately $489 Million worth of 102 237 Ethereum
- This company holds cash of approximately $215,000,000
More and more firms have publicly adopted the crypto treasury. In an attempt to increase its stock price, ETHZilla – recently rebranded – approved a $250,000,000 stock buyback Monday 25th August. The firm also revealed that it holds a total of 102 237 ETH worth $489 millions.
ETHZilla is repurchasing stock up to a limit of 250 million dollars, which will be finished by 30 June 2026. The company can buy shares on the market, or by negotiating with institutions at current market prices.
This should not be a problem for the company. ETHZilla revealed in the same release that it holds about $215,000,000 worth of cash equivalents.
Why ETHZilla repurchases stocks
Repurchasing the stock of a company accomplishes two goals. This increases pressure on stock prices and also the ETH per Share metric. The company’s stock price will be likely to increase as a result of both.
“At ETHZilla, we continue to deploy capital to accelerate our Ethereum treasury strategy with discipline and record speed,” McAndrew Rudisill, executive chairman of the Company. “As we continue to scale our ETH reserves and pursue differentiated yield opportunities, we believe an aggressive stock repurchase program at the current stock price underscores our commitment to maximizing value for shareholders.”
Formerly known as 180 Life Sciences the company has completed its a rebrand ETHZilla, on 18 August to pursue an Ethereum treasury and to acquire $419,000,000 in ETH. Almost instantly, this shift in strategy paid off. Its stock rose as high as 70% after the announcement.
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Source: crypto.news
