Ether treasury firm ETHZilla aims to secure an additional $350 million via new convertible bonds, with proceeds designated for further Ether acquisitions and yield generation through investments within the ecosystem.
ETHZilla chairman and CEO McAndrew Rudisill stated on Monday that the company’s approach focuses on utilizing Ether (ETH) in “cash-flowing assets” on the Ethereum network through layer-2 protocols and the tokenization of real-world assets.
“We believe our business model is highly scalable, with significant fixed operating leverage and recurring positive cash flow.”
A rising number of digital asset firms are progressing beyond merely holding cryptocurrencies, aiming to generate yields through active ecosystem involvement, which crypto industry leaders informed Cointelegraph in August could potentially initiate a DeFi Summer 2.0.
ETHZilla is already acquiring tokens
The Ether treasury firm has earned 1.5 million in unspecified tokens, based on the financials disclosed by the company through its ecosystem participation.
“ETHZilla continues to strategically deploy capital throughout the Ethereum ecosystem, supporting a diverse array of protocols that foster innovation, long-term network expansion, and unique yield opportunities,” the company remarked.
Previously, it raised $156.5 million through convertible bonds, and with the additional $350 million, the company now possesses over $506 million in its reserves.
If the entire amount raised is allocated for Ether purchases, ETHZilla could acquire another 120,000 tokens, augmenting their existing 102,000, which are valued at over $428 million.
ETHZilla, ranked as the eighth-largest Ether treasury company
Formerly known as Life Sciences Corp, a biotechnology firm listed on Nasdaq, it transformed into ETHZilla Corporation in July to focus significantly on Ether investment.
ETHZilla ranks as the eighth largest Ether treasury firm among 69 listed entities, which collectively hold 5.25 million tokens worth over $22 billion, representing 4.25% of the circulating supply.
Leading the pack is Tom Lee’s BitMine Immersion Technologies with 2.4 million Ether, while Sharplink Gaming follows in second place with 838,000 tokens.
Stock price shows slight improvements since crypto transition
Established in 2016 as a clinical-stage biotechnology company, Life Sciences went public in 2020; however, since its IPO, the stock has plummeted by over 99% in the past five years.
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This significant decline has been primarily linked to insufficient revenue, increasing losses, and repeated shareholder dilution to generate capital.
Currently, the stock has recorded a 31% increase for the year, with its best month occurring in August when it soared to $10.70.
In the most recent trading session, ETHZilla stock fell by 5% during regular trading but rebounded by 2% in after-hours trading, ending at $2.45.
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