Crypto treasury firm ETHZilla has liquidated a portion of its Ether holdings to repay outstanding convertible debt, according to a recent filing with the US Securities and Exchange Commission. The move comes as broader crypto market weakness pressures digital asset focused balance sheets.
In its regulatory filing, ETHZilla disclosed the sale of 24,291 Ether for $74.5 million, at an average price of $3,068.69 per ETH. Following the transaction, the company held approximately 69,800 ETH on its balance sheet as of Friday.
ETHZilla stated that all or a significant portion of the proceeds from the sale will be used to redeem its senior secured convertible notes, signaling a priority shift toward balance sheet stability over asset accumulation.
The disclosure follows heightened volatility across crypto markets, with Ether and other major tokens declining alongside Bitcoin’s retreat from its recent all-time high.
ETHZilla’s transition from biotech to crypto treasury
ETHZilla completed a strategic rebrand in late July, transitioning from its former identity as 180 Life Sciences Corp, a clinical stage biotechnology firm. The company officially pivoted toward an Ether-focused treasury strategy, marking a sharp departure from its original business model.
Before the rebrand, the company’s shares had fallen more than 99.9% since its public listing in 2020, highlighting prolonged challenges in its legacy biotech operations.
Since repositioning, ETHZilla has pursued diversification beyond crypto holdings. In December, the company announced two acquisitions, securing a 20% fully diluted stake in automotive finance AI startup Karus and a 15% stake in digital housing lender Zippy.
Despite these moves, investor sentiment remained cautious. ETHZilla shares closed down 8.7% on Monday and are now more than 65% lower year to date, based on Google Finance data.
Crypto treasury firms adjust as prices fall
ETHZilla’s Ether sale reflects a broader trend among digital asset treasury companies responding to declining prices. Public companies have rapidly expanded crypto exposure in recent years, but the current downturn has prompted several firms to rebalance.
Data from BitcoinTreasuries.NET shows that more than 190 publicly listed companies held Bitcoin as of September, collectively accounting for over 5% of Bitcoin’s circulating supply.
Ether has seen similar institutional adoption. According to CoinGecko, 27 public companies collectively hold around 6 million ETH, also representing roughly 5% of Ether’s circulating supply.
As prices weaken, some companies are prioritizing liquidity and debt reduction. In late October, FG Nexus sold 10,922 ETH to fund a share repurchase program. In November, Sequans Communications redeemed 50% of its convertible debt using proceeds from Bitcoin sales. More recently, Strategy, the first public firm to adopt a Bitcoin treasury model, raised $747.8 million through equity sales to bolster cash reserves.
For ETHZilla, the Ether liquidation underscores a defensive financial stance as crypto markets remain under pressure.
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