tl;dr
ETHZilla (ETHZ) surged 14% after Dimitri 'Capybara Stocks' Semenikhin, a meme stock influencer, invested 2.2% of the firm's shares and urged buybacks. The company responded by repurchasing $40M in shares, boosting its stock from $12.78 to $23.00 amid growing ties between retail investors, crypto, an...
**ETHZilla Shares Surge 14% After Meme Stock Influencer’s Investment and Buyback Announcement**
Shares of ETHZilla (ETHZ), a leading Ethereum treasury firm, surged 14% on Monday and continued to rise after hours, fueled by a high-profile investment from Dimitri “Capybara Stocks” Semenikhin, a meme stock influencer known for his role in the recent Beyond Meat (BYND) rally. The stock rebounded sharply from a low of $12.78 last week to $20.65 by Monday’s close, with post-market trading pushing it to $23.00. The move highlights the growing intersection of retail investor sentiment, cryptocurrency, and traditional market dynamics.
Semenikhin, who previously orchestrated a staggering 1,000% surge in Beyond Meat’s stock last week, has now turned his attention to ETHZilla. He revealed he purchased approximately 2.2% of the firm’s shares, citing a significant discount to its net asset value. “ETHZilla’s multiplier at the time of my purchase was at an all-time low of 50%, and it’s still well below other digital treasuries, trading at 65-70% of its liquid/cash asset value,” he explained. This valuation discrepancy, he argued, presents a compelling opportunity for investors.
The influencer’s involvement has sparked a broader conversation about ETHZilla’s corporate strategy. In a public open letter to the company’s management, Semenikhin urged the board to accelerate share buybacks under the firm’s $250 million authorized program. “It’s not normal that I was able to build such a large position when the company was trading at a significant discount,” he wrote. He emphasized that ETHZilla should leverage its balance sheet—particularly its Ethereum holdings—to repurchase shares, creating immediate value for shareholders.
The company heeded the call. Less than an hour after Semenikhin’s letter, ETHZilla announced it had sold Ethereum to repurchase $40 million worth of shares. “We are leveraging the strength of our balance sheet, including reducing our ETH holdings, to execute share repurchases,” stated CEO McAndrew Rudisill. The firm, which previously held 102,916 ETH (valued at $434 million as of Monday), now retains approximately $400 million in Ethereum after the sale.
The stock’s rebound follows a 1-for-10 reverse stock split implemented in August to boost its price and attract institutional investors. The move, combined with Semenikhin’s advocacy, has reignited interest in ETHZilla, which ranks sixth among publicly traded Ethereum treasury firms.
Semenikhin’s involvement also underscores the growing influence of retail investors in shaping corporate strategies. His previous success with Beyond Meat—earning comparisons to GameStop rally figure Keith “Roaring Kitty” Gill—has positioned him as a key player in the meme stock ecosystem. “After the success of my Beyond Meat investment, I wanted to showcase that there are also risk-averse investments with asymmetric upside,” he said, highlighting his focus on “responsible and opportunistic investments.”
The firm’s roster of high-profile investors further amplifies its allure. Billionaire Peter Thiel, through his entities, acquired a 7.5% stake in ETHZilla in August, contributing to an earlier stock spike. With Semenikhin’s latest push and the company’s proactive buyback strategy, ETHZilla appears to be at a pivotal moment.
As the cryptocurrency and traditional markets continue to intersect, ETHZilla’s story reflects the evolving landscape of investor engagement. For Semenikhin, it’s another chapter in his quest to balance retail-driven momentum with strategic value creation—a blend that could redefine how digital assets are perceived and managed in the years to come.