ETHZilla repurchases 6 million shares, deploys ETH into yield protocols

ETHZilla Corporation (NASDAQ: ETHZ) announced it repurchased approximately 6.0 million shares in September at an average price of $2.50 per share, according to a company statement. The company drew $50 million from a previously announced $80 million credit facility with Cumberland DRW on September 8 to fund the share buybacks under its $250 million stock repurchase program.

The repurchases, which included 4.0 million shares bought this week, reduced shares outstanding by 2.3%. ETHZilla reported total holdings of 102,255 Ether and ETH equivalents at an average acquisition price of $3,948.72, valued at approximately $460 million. The company also holds approximately $228 million in USD cash equivalents.

"We continue to view repurchasing shares as opportunistic and an accretive use of capital," said McAndrew Rudisill, the company's Chairman and Chief Executive Officer.

ETHZilla began deploying its ETH holdings into Layer 2 Ethereum protocols to generate yield. The company minted its first EtherFi ETH and is working to add additional Layer 2 protocols to its yield generation portfolio. The deployment includes 12,818 ETH in one staking protocol valued at $58 million and 45,000 ETH in another protocol valued at approximately $200 million.

The company earned 1.5 million protocol tokens valued at $2.2 million from its staking activities. ETHZilla has 160,676,122 shares outstanding as of September 12.

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