Shares of ETHZilla Corp (NASDAQ:ETHZ) are trading higher Tuesday as investors continue to react positively to the company’s strategic plan to repurchase its own stock.
- ETHZ stock is racing ahead of the pack. Track the latest developments here.
What To Know: On Monday, ETHZilla announced it sold approximately $40 million from its corporate treasury of Ethereum (CRYPTO: ETH) to fund the buybacks. The company has already acted, repurchasing 600,000 shares for roughly $12 million since Oct. 24 under its existing $250 million stock repurchase authorization.
CEO McAndrew Rudisill highlighted the move as “immediately accretive,” noting the shares were trading at a significant discount to the company’s Net Asset Value (NAV). The strategy aims to reduce the number of outstanding shares and increase the NAV per share.
After the sale, ETHZilla confirmed it retains approximately $400 million in ETH on its balance sheet, signaling a position to continue repurchases and fund future growth initiatives.
ETHZ Price Action: ETHZilla shares were up 10.53% at $22.83 at the time of publication on Tuesday, according to Benzinga Pro data. Currently, ETHZilla is trading approximately 13.2% below its 50-day moving average of $26.44, which suggests that the stock has been under pressure for an extended period.
The Relative Strength Index (RSI) sits at 41.04, indicating a neutral position that may suggest the potential for further upward movement if buying interest continues to build.
Read Also: S&P 500 Could Smash 7,000 Soon—If Traders’ Moonshot Bets Are Right
How To Buy ETHZ Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in ETHZilla’s case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
Image: Shutterstock
