New Ether Treasury ETHZilla Stock Jumps on Buyback Program

Shares of ETHZilla (ETHZ) soared 9% Monday as the cryptocurrency treasury firm announced an up to $250 million stock repurchase plan and gave an update on its holding of Ether.

The company formerly known as 180 Life Sciences and backed by billionaire Peter Thiel said the $250 million buyback would begin immediately.

Executive Chair McAndrew Rudisill explained that “an aggressive stock repurchase program at the current stock price underscores our commitment to maximizing value for shareholders.”

ETHZilla added that it now has accumulated 102,237 Ether at an average purchase price of $3,948.72, now valued at approximately $489 million. The company also said it held about $215 million in USD stablecoins. 

Earlier this month, the company completely shifted gears, moving from one that focused on therapeutic drugs to crypto, changing its name and ticker symbol (formerly “ATNF”). It said then that it would “focus a significant portion of its non-legacy operations on becoming an accumulation vehicle for Ether (ETH) that is built for the community, by the community.” Rudisill pointed out that “we are embracing our identity as ETHZilla and our commitment to developing a market-leading strategy that seeks to bring the value of Ethereum to investors in the public markets.”

Ether, the second-biggest cryptocurrency after Bitcoin, traded at an all-time high over the weekend before pulling back about 2.5% Monday to about $4,665. 

The company’s shares have nearly doubled in value this year.