Ethereum Treasury Firm’s Bold Buyback Plan Raises Alarm

ETHZilla Corporation has unveiled a substantial $250 million share repurchase initiative, a move that follows a dramatic 76% decline in its share price since peaks reached in August. The program is partially funded through an $80 million debt facility provided by Cumberland DRW, the crypto-focused division of market maker DRW. This loan is secured against ETHZilla’s own Ethereum holdings, a detail that has prompted significant skepticism from financial analysts.

Market experts are expressing deep concern over the company’s strategy. The decision to take on debt collateralized by its volatile cryptocurrency assets to finance buybacks is viewed as a high-stakes gamble. Adam Morgan McCarthy, an analyst at Kaiko, offered a stark assessment, stating the plan “looks like a death rattle.” The core criticism centers... Read more...