TLDR
- ETHZilla (ETHZ) executed 1-for-10 reverse split on October 20, bringing shares to $16.80 to attract institutional buyers
- Company treasury holds 102,000 ETH worth $400M plus $215M in cash after pivoting from biotech
- Peter Thiel’s 7.5% stake sparked 207% one-day rally, stock up 90% YTD despite 15% weekly drop
- Deployed $147M into Ether.fi and Puffer Finance DeFi protocols for yield generation
- Analysts project ETH could hit $7,700 by 2026, boosting ETHZilla’s asset value
ETHZilla Corporation completed its 1-for-10 reverse stock split on October 20, 2025. The move brings shares to approximately $16.80, up from $1.68 pre-split.
The company executed the consolidation to attract institutional investors. Many large funds maintain minimum price thresholds around $10 per share regardless of market cap.
“The reverse split is designed to provide these investors access to collateral and margin availability associated with stock prices greater than $10.00,” ETHZilla stated. The split reduced outstanding shares from 160 million to 16 million.
ETHZilla holds approximately 102,000 ETH in its treasury, worth over $400 million. The Palm Beach-based firm also maintains $215 million in cash and stablecoins.
That makes it one of the top six corporate Ethereum holders worldwide. The company pivoted from biotech firm 180 Life Sciences in July, rebranding as an Ethereum investment vehicle.
Peter Thiel Backing Drives Volatility
Billionaire Peter Thiel disclosed a 7.5% stake in August. The news triggered a 207% single-day stock surge as investors piled into the crypto play.
However, volatility has been extreme. Shares are down 15% over the past week despite remaining up 90% year-to-date.
The stock fell over 84% from its mid-August peak by early October. Daily trading ranges frequently swing 8-10% or more.
ETHZilla launched a $250 million share buyback program to show confidence. The company borrowed $80 million against its Ether holdings to fund repurchases without selling crypto.
Executive Chair McAndrew Rudisill called the buyback “our commitment to maximizing value for shareholders.” Management calculated net asset value around $3.99 per share pre-split.
DeFi Deployment Strategy
ETHZilla isn’t passively holding crypto. The company deployed $100 million into Ether.fi for liquid staking rewards.
It allocated another $47 million to Puffer Finance for “restaking” that compounds returns. These DeFi strategies aim for yields in high single or double digits.
“Puffer takes advantage of compounding and selling strategies to maximize returns,” explained contributor Amir Forouzani. The company secured $350 million in convertible financing to fund future moves.
ETHZilla added Jason New, Vice Chairman of Investment Banking at Lazard, to its board this month. The hire signals plans to bridge traditional finance with DeFi.
Risk remains high. “ETHZilla’s stock price may be highly correlated to the price of the digital assets that it holds,” the company warned in SEC filings.
If Ethereum surges, ETHZilla’s assets could appreciate dramatically. Analyst Rhys Northwood projects ETH could reach $7,700 by 2026 as institutional adoption grows.
That would roughly double Ethereum’s price and boost ETHZilla’s holdings. However, a crypto crash would hit the company’s valuation equally hard.
Technical analysts flagged the stock as “very high risk.” Momentum indicators recently hit oversold levels after seven down days in the last ten trading sessions.
The reverse split announcement initially spooked investors, with shares dropping over 5% the following day. However, management emphasized the move reflects strategic positioning, not desperation.
ETHZilla reports Q3 2025 earnings on October 23, where investors will learn more about DeFi revenue generation and future acquisition plans.
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