Ethereum News Update: ETHzilla’s Move to Wall Street Triggers DeFi Identity Dilemma
- ETHzilla sold $40M in ETH to fund a stock buyback, reducing its share discount to NAV amid crypto-treasury sector scrutiny. - The move triggered DeFi community backlash, with critics accusing the firm of abandoning its decentralized ethos for Wall Street strategies. - Over 25% of crypto-treasury companies now trade below asset value, creating systemic risks as forced asset sales accelerate. - ETHZ shares surged 32% post-announcement, but the firm remains unprofitable with -$150.7 EPS and no revenue in la
ETHzilla Corporation (Nasdaq: ETHZ) has ignited widespread discussion within both the cryptocurrency and financial industries after offloading $40 million worth of
The ETH sale follows a controversial 1-for-10 reverse stock split on October 20 and the hiring of John D. Kristoff as Senior Vice President of Corporate Communications and Investor Relations, as highlighted in
ETHZilla’s recent moves come as the overall crypto-treasury stock strategy faces mounting challenges. Once celebrated in 2025, the practice—where firms like MicroStrategy and
The company’s financial outlook is mixed. Despite holding $400 million in ETH, ETHZilla reported zero revenue last quarter and an earnings per share of -150.7, underscoring its pre-revenue phase, as noted by GuruFocus. Its $250 million buyback plan, financed through asset sales, has yet to yield profits but has improved short-term cash flow. Additionally, the company revealed a partnership with Liquidity.io, investing $15 million for a 15% equity stake in the digital asset platform to further real-world asset securitization—an indication of its ongoing DeFi interests, according to
Experts remain split on ETHZilla’s future. While the company positions itself as a connector between traditional finance and DeFi, its stock’s recent volatility—up 17.38% on October 24—shows persistent doubts about its ability to generate revenue from its blockchain infrastructure, as observed by SimplyWall. With crypto prices still below their highs and regulatory questions unresolved, ETHZilla’s efforts to juggle crypto treasury management and stock market tactics will be closely monitored as an indicator of the sector’s resilience.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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