ETHZilla Plans $350M Raise to Expand Ether Treasury and Yield Strategy
Ether treasury company ETHZilla is looking to raise another $350 million through new convertible bonds, with funds marked for more Ether purchases and generating yield through investments in the ecosystem.
ETHZilla chairman and CEO McAndrew Rudisill said on Monday that the company’s strategy is to deploy Ether (ETH) in “cash-flowing assets” on the Ethereum network through 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.”
A growing number of digital asset companies are moving past simply holding crypto and looking to generate yields through active participation in the ecosystem, which crypto executives told Cointelegraph in August, could help spark a DeFi Summer 2.0.
ETHZilla is already earning tokens
The Ether treasury company has already earned 1.5 million in unnamed tokens, according to the company’s disclosed financials through its participation in the ecosystem.
“ETHZilla continues to actively deploy capital across the Ethereum ecosystem, strategically supporting a diverse range of protocols that drive innovation, long-term network growth, and differentiated yield,” the company said.
It also previously raised $156.5 million through convertible bonds, which, combined with the fresh $350 million, leaves the company with over $506 million in its war chest.
If it uses the entire raise for more Ether purchases, ETHZilla could stack another 120,000 tokens and add to their stash of 102,000, worth more than $428 million.
ETHZilla, the eighth-largest Ether treasury company
Formerly Life Sciences Corp, a Nasdaq-listed biotechnology company, it rebranded as ETHZilla Corporation in July to pivot heavily into Ether investment.
ETHZilla is the eighth largest Ether treasury company out of 69 listed, which combined, hold 5.25 million tokens, worth over $22 billion and representing 4.25% of the circulating supply.
Tom Lee’s BitMine Immersion Technologies leads the pack with its 2.4 million Ether, while Sharplink Gaming is in second with 838,000 tokens.
Stock price has been making small gains since crypto shift
Founded in 2016 as a clinical-stage biotechnology firm, Life Sciences went public in 2020, but since its initial public offering, the stock has plunged by over 99% in the last five years.
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The sharp decline was attributed mainly to a lack of revenue, mounting losses and repeated shareholder dilution to raise capital.
Its stock has since registered a 31% gain for the year, with its best-performing month coming in August when it rocketed to $10.70.
In the last trading session, ETHZilla stock is down 5% in the regular session but rose 2% after hours to trade at $2.45.
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