Ethzilla Corp Executes 1‑for‑10 Reverse Stock Split

On October 20 2025, Ethzilla Corp (NASDAQ: ETHZ), a company that manages a substantial treasury of Ethereum and other digital assets, completed a 1‑for‑10 reverse stock split. The action reduced the number of outstanding shares from roughly 160 million to 16 million, increasing the per‑share price to approximately $16.80. The move was announced to make the stock more attractive to institutional investors and to align the share price with market expectations.

Treasury Holdings

Prior to the split, Ethzilla’s treasury comprised about 102 000 ETH, valued at over $400 million, along with $215 million in cash and stablecoins. These holdings represent the core of the company’s business model, which focuses on maintaining a diversified portfolio of cryptocurrency assets.

Market Context

The reverse split took place amid heightened volatility in the broader crypto market. Bitcoin (BTC) and Ethereum (ETH) were trading below their early‑October highs, and traders were monitoring a series of events that could influence sentiment:

  • The Federal Reserve’s Payments Innovation Conference in Washington on October 21, a key event for assessing future monetary policy.
  • A major upgrade for the Zilliqa blockchain (ZIL), scheduled for October 22, which would introduce the Zilliqa 2.0 mainnet through a hard fork.
  • Additional scheduled upgrades and seminars from payment‑network operators, including Circle’s “Inside the Circle Payments Network” session on October 22.

These developments were viewed as potential catalysts for stabilizing market conditions and restoring confidence among investors.

Company Background

Ethzilla Corp is listed on the Nasdaq exchange and trades in USD. Its 52‑week high was $174.60 (August 12, 2025), while the 52‑week low was $6.58 (April 8, 2025). As of October 20, the closing price stood at $16.36. The company’s market capitalization is approximately $269.1 million. Ethzilla’s price‑earnings ratio is negative, at –0.28, reflecting its current financial structure and focus on asset accumulation rather than traditional earnings.

Ethzilla’s primary business is the management of a sizable cryptocurrency treasury, and it does not have a traditional product line or revenue stream typical of biotech or other sectors. The company’s strategy is to generate returns through appreciation in the value of its digital asset holdings.

Implications of the Reverse Split

  • Share Price Alignment: By increasing the per‑share price, Ethzilla aims to meet the minimum price thresholds required by certain institutional investment mandates.
  • Liquidity Considerations: The reduction in share count could lead to improved liquidity in the secondary market, potentially attracting larger block trades.
  • Investor Perception: The reverse split signals a commitment to long‑term capital appreciation and may improve the company’s standing among institutional and high‑net‑worth investors.

Outlook

Ethzilla’s next significant event will be the Zilliqa mainnet upgrade, which could impact the valuation of its crypto holdings. Market participants will also watch the Federal Reserve’s conference for any hints regarding future policy shifts that could influence the broader asset environment. The company’s performance will be measured against its ability to maintain and grow its treasury value while navigating the evolving regulatory and technological landscape of the cryptocurrency sector.