ETHZilla Corporation (Nasdaq: ETHZ), formerly known as 180 Life Sciences, the Ethereum (ETH) treasury firm, announced on Monday that its board of directors has authorized a stock repurchase program of up to $250 million of the company’s outstanding shares, effective immediately.
The move comes at a turbulent moment for ETHZilla’s stock. The company, which trades under ticker ETHZ, has seen its share price tumble more than 53% over the past week, and is now standing at $3.18. The sharp fall follows a surge earlier this month that briefly tripled the firm’s value after billionaire venture capitalist Peter Thiel disclosed a stake in the company.
But last week’s momentum was cut short after ETHZilla filed with the U.S. Securities and Exchange Commission (SEC) on August 8 to offer 74.8 million convertible shares, fueling fears of dilution. The filing is set to expand the firm’s total outstanding shares from 164.4 million to more than 239.2 million.
Shares slid nearly 3.8% on Monday after the buyback announcement, with ETHZilla giving up most of its recent gains and showing less than a 5% rise over the past month.
Despite the volatility, ETHZilla is doubling down on its Ethereum strategy. The Palm Beach, Florida-based company disclosed that it now holds 102,237 Ether (ETH) at an average acquisition price of $3,948.72, valued at approximately $489 million. That tally includes 7,600 ETH acquired over the past week. Alongside its crypto holdings, the firm maintains about $215 million in USD cash equivalents.
“At ETHZilla, we continue to deploy capital to accelerate our Ethereum treasury strategy with discipline and record speed,” said 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.”
The company added that its most recently purchased ETH is expected to be held long-term and staked through Electric Capital’s proprietary Electric Asset Protocol to generate yield.
The stock repurchase program is scheduled to expire on June 30, 2026, or earlier if the company completes $250 million in repurchases. ETHZilla said it will fund the program using its working capital and potential proceeds from future financings, with the flexibility to repurchase shares through open-market transactions, negotiated deals, or a Rule 10b5-1 plan.
Meanwhile, Ethereum itself has been on a record-breaking run. The cryptocurrency hit an all-time high of $4,946 on Friday, the first in nearly four years, before retreating to $4,604 as of Sunday night, down over 4% in the past 24 hours, according to CoinGecko.
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