Ethzilla (ethz) shares about 30% because dilution fear covers $ 349m ether (eth) treasury
Sharing of Ethzilla (Etz).
The offer has caused concerns about dilution, a process by which existing shareholders’ stakes are losing value as more stocks enter the market. For investors, this means that their slice of hand -owner is diminishing, even though the overall value of the company does not change.
After the release of new shares, the remaining shares of the company will rise nearly 46% to 239.3 million from 164.4 million, According to the filing. The company will not receive any proceeds from shareholders who sell their converted shares.
Ethzilla has rebranded Earlier this month In a Crypto Treasury company and revealed it holds 82,186 ether, costing about $ 349 million at current prices, in conjunction with $ 238 million cash equivalent. Ether was obtained at an average price of $ 3,806.71 per token. News of the Pivot and the size of the holders who sent sharing surging on August 11, raising the stock 80% year-to-date before the sharp return Friday.
The strategic shift also draws heavy backers.
Peter Thiel, who supported the public at Ethereum, holds a 7.5% stake in ethz through his founders fund. The fund also owned 9.1% of Bitmine’s immersion technology, which recently raised $ 250 million to produce its own ether reserves. Thiel’s involvement features a wider stakes of influential investors that Ethereum may claim the next generation of financial infrastructure.
Ether itself gained momentum in 2025 after disappearing behind other Altcoins last year. The token reached the 38% year-to-date, exceeding the 24% Bitcoin increase and the 17% income of the CoinDesk 20 index. For context, Bitcoin climbed 121% in 2024 while Ether added only 31%. Turnaround coincides with the clarity of US regulation that motivates Wall Street institutions to adopt Ethereum as a base layer for the launch of new financial and service products.
Despite climbing prices and interests from investors, the Ethz shares moved against the broader trend on Friday. The Nasdaq, S&P 500 and Dow are higher after comments from the Federal Reserve Chair Jerome Powell, while Ether itself has gained 9% over the past 24 hours.
The sale emphasizes the tension between Ethz’s promise as a large public exchanged ether wealth and investors do not fit about close digestion. While the company’s balance sheet places it on the largest ether holders in the corporate world, shareholders weigh if that promise may exceed the risks that are cut into smaller pieces.
