Shares of Ethereum treasury company ETHZilla (ETHZ) soared 14% on Monday and continued to rise after hours, further accelerating gains seen late last week. Beyond Meat (BYND) Meme Stock Influencer He has earned a position in the company and wants the company to change.
Dimitri “Capybara Stock” Semenikhin helped push BYND’s price soar more than 1,000% last week and has been compared to GameStop’s unofficial ambassador. Keith “Roaring Kitty” Gillthe person who rallied Redditors behind the game. Retailer stock prices on the rise in meme stocks in 2021.
BYND When the pump cools down, Semenikin changed his focus. He now sees value in ETHZilla and claims to have bought about 2.2% of the company’s shares.
“The Treasury bet is actually measured by a multiplier on net worth,” he said. decryption on monday. “At the time of my purchase, ETHZilla had an all-time low multiplier of 50%, and it still trades at 65-70% of liquid/cash value, well below other digital government bonds.”
The investor has explained his theory in more detail to his recently growing audience of followers on X and YouTube, and is currently pitching ETHZilla executives on its future direction.
“Today, we published an open letter to our management because we believe our ability to repurchase our own shares as part of our already authorized share repurchase program is significantly underutilized,” he said.
Semenikin said it was unusual for the company to be able to build such a large stock position when it was trading at such a deep discount to its net asset value.
“The company should have bought back these shares itself,” he added.
August, ETHZilla Announces $250 million stock repurchase program To deliver value to shareholders. Now, one of the company’s newer and most vocal investors is “asking” management to sell some of its ETH holdings and buy back its own stock in order to provide immediate value to shareholders.
It breaks. This is an open letter to $ETHZ management. pic.twitter.com/1wV9pFQuQE
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in less than an hour Semenikhin posted an open letter announcing that ETHZilla has sold Ethereum, bought back approximately $40 million worth of shares, and will continue to do so as mNAV trades below 1.
“We leverage the strength of our balance sheet, including reducing our ETH holdings, to execute share buybacks,” Chairman and CEO McAndrew Rudisill said in a statement.
The company recently held 102,916 ETH, Ranked 6th among listed Ethereum financial companies As of Monday, ahead of the sale, the Treasury is worth about $434 million. After the recent sale, he still holds around $400 million in ETH.
ETHZ stock fell to $12.78 last week, but has since recovered to $12.78. It was trading at $20.65 at Monday’s close and recently traded at $23.00 in after-hours trading. At the close of trading, ETHZ had gained more than 20% over the past five trading days.
last week, The company completed a 10:1 reverse stock split. This is to boost stock prices and provide broader access to institutional investors.
Beyond the newly famous meme stock investors The company also boasts billionaire Peter Thiel as a shareholder.. Mr. Thiel and related parties bought a 7.5% stake in ETHZilla in August, leading to an early jump in the stock price.
“After our successful investment in Beyond Meat, and considering the large community that was formed by this, we wanted to introduce to this newly formed community that we can also make more risk-averse investments with asymmetric upside at the same time, in order to demonstrate our values around responsible and opportunistic investing,” Semenikhin said.
Additional reporting by Ryan Gladwin
