ETHZilla Sells $74.5 Million in Ether to Settle Convertible Debt

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Crypto treasury firm ETHZilla has liquidated a portion of its Ether holdings to address outstanding debt. The company disclosed the move in a filing with the US Securities and Exchange Commission, citing the recent broader market downturn as context for the transaction.

According to the filing, ETHZilla sold 24,291 Ether for a total of $74.5 million, achieving an average price of $3,068.69 per token. This sale leaves the company with approximately 69,800 ETH remaining on its balance sheet. The firm stated it anticipates using all, or a significant part, of the proceeds to redeem its outstanding senior secured convertible notes.

ETHZilla is a recent corporate entity, having rebranded from 180 Life Sciences Corp on July 29. This shift marked a complete pivot from its former focus on biotechnology to a new strategy centered on Ether investment. Prior to the rebrand, the clinical-stage biotech had seen its share price decline more than 99.9% since its 2020 public debut.

The debt redemption follows the company’s announcement of two acquisitions in December. Those deals included taking a 20% fully diluted stake in automotive-finance AI startup Karus and a 15% stake in digital housing lender Zippy. Despite its new direction, the company’s stock fell 8.7% in Monday’s trading session and remains down over 65% for the year, according to market data.