The Ether treasury firm ETHZilla aims to raise an additional $350 million via new convertible bonds, with the funds allocated for further Ether acquisitions and generating yields through ecosystem investments.
ETHZilla chairman and CEO McAndrew Rudisill stated on Monday that the company’s approach is to leverage Ether (ETH) in “cash-flowing assets” on the Ethereum network, utilizing layer-2 protocols and tokenizing real-world assets.
“We believe our business model is highly scalable, with significant fixed operating leverage and recurring positive cash flow.”
An increasing number of digital asset firms are advancing beyond merely holding cryptocurrencies, aiming to earn yields through active participation in the ecosystem, which crypto executives shared with Cointelegraph in August could ignite a DeFi Summer 2.0.
ETHZilla is actively generating tokens
The Ether treasury firm has already secured 1.5 million in undisclosed tokens, as per the company’s published financials through its ecosystem participation.
“ETHZilla continues to strategically deploy capital across the Ethereum ecosystem, supporting a variety of protocols that foster innovation, long-term network growth, and differentiated yields,” the company remarked.
In a previous round, it raised $156.5 million through convertible bonds. Combined with the fresh $350 million, this brings the company’s total to over $506 million.
If the entire raise is utilized for acquiring more Ether, ETHZilla could accumulate an additional 120,000 tokens, enhancing their reserve to 102,000, valued at over $428 million.
ETHZilla ranks as the eighth-largest Ether treasury firm
ETHZilla stands as the eighth largest Ether treasury firm among 69 listed entities, which collectively hold 5.25 million tokens, valued over $22 billion, constituting 4.25% of the circulating supply.
Tom Lee’s BitMine Immersion Technologies leads with 2.4 million Ether, followed by Sharplink Gaming with 838,000 tokens.
Stock price has seen slight gains following crypto transition
Established in 2016 as a clinical-stage biotech company, Life Sciences went public in 2020, but since its initial public offering, the stock has dropped over 99% in the last five years.
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This sharp decline is primarily due to a lack of revenue, increasing losses, and repeated shareholder dilution to raise funds.
However, its stock has achieved a 31% gain this year, with its strongest month in August, peaking at $10.70.
In the most recent trading session, ETHZilla stock dropped 5% during the regular session but climbed 2% after hours to reach $2.45.
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