Ethzilla Liquidates $74.5m In Ether To Redeem Convertible Debt

The transaction highlights growing pressure on crypto treasury companies to prioritize debt reduction as token prices remain volatile.

Crypto treasury company ETHZilla said in a filing with US regulators that it sold part of its Ether holdings to repay outstanding convertible notes amid a broader market downturn.

The company disclosed in a filing with the Securities and Exchange Commission the sale of 24,291 Ether (ETH) for $74.5 million at an average price of $3,068.69 per token, leaving about 69,800 ETH on its balance sheet as of Friday.

The company said it expects to use all or a significant portion of the proceeds to redeem its outstanding senior secured convertible notes.

ETHZilla rebranded from 180 Life Sciences Corp on July 29, pivoting away from biotechnology to an Ether-focused investment strategy. Until then, the former clinical-stage biotech had seen its shares fall more than 99.9% since going public in 2020.

The news comes after ETHZilla announced two acquisitions in December, taking a 20% fully diluted stake in automotive-finance AI startup Karus and a 15% stake in digital housing lender Zippy.

The former biotech company’s stock closed the trading session declining 8.7% on Monday and is down more than 65% year-to-date, according to Google Finance data.

Related: Metaplanet clears issuance of dividend-paying shares for overseas institutions

In September, Cointelegraph reported that publicly traded companies have sharply increased their Bitcoin (BTC) exposure this year. Data from BitcoinTreasuries.NET shows that more than 190 listed companies now hold Bitcoin on their balance sheets, with combined holdings exceeding 5% of Bitcoin’s circulating supply in September.

Ether has gauged similar demand from investors. According to CoinGecko data, 27 public companies collectively hold about 6 million ETH, also representing about 5% of the token's circulating supply.

Source: CoinTelegraph