CMC News

ETHZilla Sells $74.5M in ETH, Abandons Treasury Model

#ETHZilla has sold 24,291 $ETH tokens worth $74.5 million to settle outstanding debt obligations. The Peter Thiel-backed company announced the sale on Monday as part of its effort to redeem senior secured convertible notes.

The Nasdaq-listed firm now holds approximately 69,802 $ETH valued at $207 million. This marks the second time ETHZilla has reduced its #Ethereum holdings, following an October sale of $40 million in tokens to fund a $250 million stock repurchase program.

ETHZilla is abandoning the #digital asset treasury model it adopted just six months ago. The company stated that future valuation will be determined by revenue and cash flow from its real-world asset tokenization operations rather than crypto holdings.

The firm entered a $425 million PIPE agreement in July with more than 60 investors when it initially pivoted to accumulating $ETH. That strategy mirrored the approach of smaller Nasdaq companies attempting to replicate the success seen with #Bitcoin-focused treasury models.

ETHZilla announced it will discontinue its mNAV dashboard, which displayed how market capitalization compared to net crypto assets. The company plans to provide periodic balance sheet updates instead of the real-time transparency previously offered to investors.

The company is now pursuing tokenization of auto loans, manufactured home loans, aerospace equipment, and real estate. This shift comes as $ETH has declined nearly 30% over three months, currently trading around $3,000.

Shares dropped nearly 4% to $6.64 following the announcement. The stock had surged over 90% in August when Thiel's investment in the digital asset treasury became public.

Pressure is mounting across digital asset #treasury firms as stock prices have fallen more sharply than underlying crypto values.