This Ethereum Treasury Stock Is Rising Following Beyond Meat Investor’s Backing

Shares of ETHZilla (ETHZ) rose 14% on Monday after influential investor Dimitri Semenikhin acquired over 2% of the firm's shares, prompted by a significant discount between its trading market cap and net asset value. Following Semenikhin's advice, ETHZilla sold approximately $40 million worth of Ethereum to repurchase its shares. The firm had been trading as low as $12.78 last week but rebounded to $20.65, with recent trades reaching $23.00. Semenikhin, leveraging his recent success with Beyond Meat, is advocating that ETHZilla utilize its cash assets more efficiently by buying back shares, which he notes were underutilized by the company. He believes the stock is undervalued, trading below its asset liquidation value. As of now, ETHZilla still holds around $400 million in Ethereum following the sale. This situation reflects a broader trend where community sentiment and influencer backing can significantly impact stock prices, reminiscent of the GameStop phenomenon.

Source 🔗