ETHZilla sells 40 million dollars worth of Ethereum to repurchase stocks, will it trigger a chain reaction of DAT dumping?

ETHZilla sold $40 million worth of Ether to repurchase stocks for market stabilization. There is market concern about whether this will trigger a chain reaction of dumping among peers? (Background: All sold! Japanese Bitcoin reserve company Value Creation closed all positions in BTC, what did it see?) (Additional context: Rich Dad: Those who bought Ethereum at $4,000 today will be like the wealthy who invested in Bitcoin at $4,000 in the past.) The Ether reserve company ETHZilla (ETHZ) confirmed this week that it has initiated a “sell coins to buy stocks” strategy to narrow the gap between its stock price and net asset value (NAV). Since October 24, it has sold $40 million worth of Ether to repurchase about 600,000 shares of company stock. Full picture of ETHZilla's market stabilization: ETHZilla's stock price quickly fell below $25 from a high of over $100 in August. Chairman McAndrew Rudisill believes this is an “obvious discount.” To restore confidence, the board approved a $250 million share buyback in August. The company began selling Ether in batches from October 24 and used the funds to repurchase stocks until the discount narrowed. On the day of the announcement, the stock price rose 14.5%, and after-hours trading increased by nearly 12%, showing that short-term investors had a positive attitude towards this move. However, it also prompted the market to think: will other publicly traded companies holding large amounts of crypto assets follow suit and trigger a new wave of selling pressure? Will the selling trend spread? It is understood that the world's second-largest Ether reserve company SharpLink Gaming (SBET) has actually prepared a $1.5 billion share buyback plan. If the NAV discount worsens, it may replicate ETHZilla's actions at any time. However, in contrast, BitMine, led by Tom Lee, bought 77,000 Ether during the same period, indicating a continued bullish stance in the long term. This strategy differentiation shows that currently, “selling coins to save stocks” remains a case and has not evolved into an overall trend. Key points for investors to observe moving forward: First, the stock price and NAV discount: If ETHZilla remains below asset value, it indicates insufficient repurchase power, and other companies may determine that dumping alone cannot solve the problem. Second, liquidity in the Ether market: Whether ETF fund inflows and staking annual percentage rates can maintain between 3% to 5% will directly determine whether the selling pressure can be absorbed. Third, macro risk appetite: If the results of the U.S. Federal Reserve's interest rate decisions and trade negotiation progress lead to weakness in risk assets and increased corporate cash demands, “selling coins” may be included in options. Overall, ETHZilla's actions act as an early warning bell, reminding investors to assess the stock price stabilization mechanisms of crypto asset reserve companies. However, based on current signs, a single event is not enough to trigger a chain selling. In the future, if multiple companies face cash demands simultaneously, the overall selling pressure may have the opportunity to spread. Related Reports: Will the Ethereum L2 network MegaETH soon have its TGE? It is said to be planning an ICO on the Sonar platform, what preparations can be made? The fog and lighthouse of Bitcoin L2, the positioning of GOAT Network in the new order. Base chain is embroiled in controversy: debating whether L2 counts as an exchange to the centralization of orderers. <Will ETHZilla's sale of $40 million worth of Ethereum to repurchase stocks trigger a chain reaction of DAT dumping?> This article was first published in BlockTempo, the most influential blockchain news media.