The Ethereum Treasury Company, backed by billionaire Peter Thiel, has launched its share buyback programme amid the most recent ETH ever meeting.
According to the announcement, Ethzilla's (Ethz) board has approved a $250 million repurchase program of the company's outstanding common stock.
According to Bankrate, when a company purchases its own shares, when it purchases its own shares, it will result in a share buyback and reduce the total number of outstanding shares. Buybacks are seen as a way to increase the value of investors.
says McAndrew Rudisill, executive chairman of Ethzilla.
“As we continue to expand ETH bookings and pursue differentiated yield opportunities, we believe our current aggressive stock repurchase programme underscores our commitment to maximizing shareholder value.”
The company also revealed that it owns 102,237 ETH with an average acquisition price of $3,948. At the time of writing, the company's ETH holdings are worth approximately $465 million. Additionally, Ethzilla holds approximately $215 million in cash equivalents.
The company says that the recently purchased ETH will be held for a long time and will seep into its own electric asset protocol, generating yields that are supposed to surpass traditional ETH staking protocols.
Earlier this month, 180 Life Sciences Corp. was rebranded as Ethzilla and acquired the top Altcoin by market capitalization after accumulating $425 million through pipe (private investment in public stock) funds and offering a $15625 million conversion amount.
Ethereum tapped a new Sunday, a new Sunday for around $4,900. ETH has since dropped 2.1% to $4,547 at the time of writing.
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