Crypto treasury firms face rising pressure to strengthen balance sheets as digital asset prices fluctuate
ETHZilla has sold a significant portion of its Ether holdings to address outstanding debt obligations, reflecting a broader trend among digital-asset-focused firms prioritizing debt reduction over asset accumulation during periods of market uncertainty.
ETHZilla Ether Sale to Redeem Convertible Notes
In a recent regulatory filing, ETHZilla disclosed that it sold 24,291 Ether for $74.5 million, achieving an average sale price of $3,068.69 per ETH. Following the transaction, the company retains approximately 69,800 ETH on its balance sheet.
The company stated that all or a substantial portion of the proceeds will be used to redeem its senior secured convertible notes, signaling a strategic move to lower financial leverage as crypto prices remain volatile.
ETHZilla recently rebranded from 180 Life Sciences Corp, marking a dramatic shift from biotechnology to an Ether-focused investment strategy. Prior to the pivot, the company’s stock had declined by more than 99.9% since its 2020 public listing.
Despite announcing two acquisitions in December, including minority stakes in an automotive finance AI firm and a digital housing lender, investor sentiment remains weak. The stock closed down 8.7% in the latest session and is over 65% lower year-to-date.
As Bitcoin and Ether prices retreat from recent highs, treasury-focused companies are increasingly liquidating assets or raising capital to stabilize finances. Public companies now hold roughly 5% of Bitcoin’s circulating supply, while Ether treasury holdings among listed firms total around 6 million ETH, also near 5% of supply.
These developments underline a growing shift toward balance sheet resilience, as firms navigate ongoing crypto market downturns.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.