ETHZilla has sold $74.5 million worth of ether to repay outstanding debt, signaling a strategic shift away from its recently adopted digital asset treasury model toward tokenized real world assets. The company said it sold 24,291 ETH as part of the redemption of its senior secured convertible notes, with most of the proceeds earmarked for debt repayment. ETHZilla, which transitioned earlier this year from its former identity as biotech firm 180 Life Sciences, stated that the move reflects a reassessment of how best to support long term value creation amid changing market conditions. Following the sale, the firm said it holds approximately 69,802 ETH valued at about $207 million. The transaction marks a notable change in direction less than six months after ETHZilla publicly pivoted toward an ether based treasury strategy designed to mirror crypto accumulation models adopted by other public companies.
The latest sale follows an earlier disposal of $40 million in ether in October, which formed part of a broader capital management effort that included a $250 million share repurchase plan. ETHZilla’s crypto focused strategy had been backed by a $425 million private investment in public equity completed in July with participation from more than 60 investors, including backing linked to Peter Thiel. At the time, the firm joined a wave of smaller Nasdaq listed companies pursuing digital asset treasury approaches in hopes of capturing valuation upside tied to crypto holdings. However, softer ether prices and the constraints of servicing debt appear to have narrowed the margin for maintaining large scale accumulation strategies, particularly for firms without diversified operating cash flows.
Going forward, ETHZilla said it expects its valuation to be driven primarily by revenue and cash flow from its real world asset tokenization business rather than crypto holdings. The company has outlined plans to tokenize assets including auto loans, manufactured housing loans, aerospace equipment, and real estate, positioning itself closer to financial infrastructure than speculative asset exposure. As part of this shift, ETHZilla also said it will discontinue its mNAV dashboard, a metric closely watched by investors focused on crypto treasury value, while continuing to provide periodic balance sheet updates. The move underscores a broader recalibration among smaller crypto treasury firms as market volatility and financing costs reshape how digital assets fit within public company balance sheets.
