Ether treasury firm ETHZilla is aiming to secure an additional $350 million through new convertible bonds, with the proceeds allocated for further Ether purchases and generating yield via ecosystem investments.
ETHZilla’s chairman and CEO McAndrew Rudisill stated on Monday that the company’s strategy is to utilize Ether (ETH) in “cash-flowing assets” within the Ethereum network by leveraging layer-2 protocols and tokenizing real-world assets.
“We are confident that our business model offers high scalability, considerable fixed operating leverage, and ongoing positive cash flow.”
An increasing number of digital asset firms are shifting from merely holding crypto to seeking yields through active ecosystem participation, which crypto executives indicated to Cointelegraph in August could potentially trigger a DeFi Summer 2.0.
ETHZilla is already accruing tokens
The Ether treasury company has reportedly earned 1.5 million in unspecified tokens, based on the company’s disclosed financial statements from its ecosystem involvement.
“ETHZilla remains proactive in deploying capital throughout the Ethereum ecosystem, strategically backing a diverse array of protocols that foster innovation, sustainable network growth, and unique yield,” the company expressed.
It previously secured $156.5 million via convertible bonds, and with the new $350 million, the company will have over $506 million available.
If the full amount is used for additional Ether purchases, ETHZilla could acquire another 120,000 tokens, boosting their collection of 102,000, valued at over $428 million.
ETHZilla ranks as the eighth-largest Ether treasury company
Formerly known as Life Sciences Corp, a Nasdaq-listed biotech firm, it rebranded to ETHZilla Corporation in July to intensify its focus on Ether investment.
ETHZilla stands as the eighth largest Ether treasury company out of 69 listed, collectively holding 5.25 million tokens, worth over $22 billion, representing 4.25% of the circulating supply.
Leading the group is Tom Lee’s BitMine Immersion Technologies with its 2.4 million Ether, while Sharplink Gaming follows in second place with 838,000 tokens.
Stock price shows modest gains since crypto transition
Founded in 2016 as a clinical-stage biotech firm, Life Sciences went public in 2020, but its stock has plummeted by over 99% since its initial public offering five years ago.
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The steep decline is primarily attributed to a lack of revenue, increasing losses, and ongoing shareholder dilution for capital raising.
Recently, its stock has reported a 31% increase for the year, with August marking its best month as it surged to $10.70.
In the most recent trading session, ETHZilla stock fell 5% during the regular session but increased by 2% in after-hours trading to settle at $2.45.
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