ETH treasury firm ETHZilla aims to raise an additional $350 million through new convertible bonds, with the proceeds designated for further Ether acquisitions and yielding investments within the ecosystem.
ETHZilla’s chairman and CEO McAndrew Rudisill announced on Monday that the company intends to utilize Ether (ETH) in “cash-flowing assets” on the Ethereum network via layer-2 protocols and by tokenizing real-world assets.
“We are confident that our business model is highly scalable, with significant fixed operating leverage and recurring positive cash flow.”
An increasing number of digital asset firms are evolving beyond merely holding cryptocurrency and are now exploring avenues to generate yields through active ecosystem engagement, a trend industry executives told Cointelegraph in August may trigger DeFi Summer 2.0.
ETHZilla is already accumulating tokens
The Ether treasury firm has already amassed 1.5 million in undisclosed tokens, as per the financial details made public by the company through its ecosystem involvement.
“ETHZilla remains committed to strategically deploying capital throughout the Ethereum ecosystem, providing support for a diverse array of protocols that foster innovation, sustainable network development, and unique yield opportunities,” the firm stated.
Previously, the company raised $156.5 million through convertible bonds, which, along with the new $350 million, totals over $506 million in available capital.
Should it fully allocate the new funds towards Ether purchases, ETHZilla could acquire an additional 120,000 tokens, boosting its current stash of 102,000, valued at over $428 million.
ETHZilla ranks as the eighth-largest Ether treasury company
Originally Life Sciences Corp, a Nasdaq-listed biotech firm, it rebranded as ETHZilla Corporation in July to heavily invest in Ether.
ETHZilla is the eighth largest Ether treasury firm among 69 listed, which collectively hold 5.25 million tokens, valued over $22 billion and representing 4.25% of the circulating supply.
Leading the sector is Tom Lee’s BitMine Immersion Technologies with 2.4 million Ether, while Sharplink Gaming follows in second with 838,000 tokens.
Stock price has shown slight recovery since shift to crypto
Established in 2016 as a clinical-stage biotech entity, Life Sciences went public in 2020, but its stock has plummeted by more than 99% since its IPO five years ago.
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The steep decline was primarily due to a lack of revenue, increasing losses, and repeated shareholder dilution to secure capital.
The stock has since gained 31% this year, with August being its best month, reaching $10.70.
In the most recent trading session, ETHZilla stock fell 5% during the regular session but rose 2% in after-hours trading, settling at $2.45.
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