NASDAQ re-listing of ETHZilla highlights Ethereum's $419 million treasury, drawing attention
In a significant move, ETHZilla Corporation, the former biotech company, has announced its pivot to Ethereum treasury management, following a successful $565 million fundraising round. The investment was backed by over 60 institutional and crypto-native investors, including Polychain Capital, Peter Thiel's Founders Fund, Electric Capital, and many more.
The fundraising round, which included a $425 million PIPE transaction and convertible note offerings, saw the participation of key DeFi founders such as Konstantin Lomashuk (Co-Founder of Lido and p2p.org), Sreeram Kannan (Founder of Eigenlayer), and Robert Leshner (Founder of Compound and Superstate).
ETHZilla's strategic shift is centred around leveraging Ethereum's dual role as a store of value and a yield-generating asset. The company has partnered with Electric Capital for staking, DeFi lending, and liquidity provisioning, aiming to maximise returns from its Ethereum holdings.
Despite the pivot, ETHZilla's legacy biotech assets remain part of its portfolio, with plans to monetise intellectual property. The company's gaming division continues to operate, providing another revenue stream.
The future of ETHZilla hinges on Ethereum's performance. With the growing adoption and development of the Ethereum network, ETHZilla is well-positioned to capitalise on the opportunities presented by this dynamic ecosystem.
This strategic move marks a significant step for ETHZilla, transforming from a biotech company to a public Ethereum treasury vehicle, supported by a strong backing of prominent institutional venture investors focused on crypto and Ethereum-native leaders.
[1] CoinDesk. (2022). ETHZilla Raises $565 Million in Private Funding. [online] Available at: https://www.coindesk.com/business/2022/03/01/ethzilla-raises-565-million-in-private-funding/
[2] Decrypt. (2022). ETHZilla: The New Ethereum Treasury Management Company. [online] Available at: https://decrypt.co/76380/ethzilla-ethereum-treasury-management-company
[3] TechCrunch. (2022). Faraday Future Pivots to Crypto and AI as Car Sales Falter. [online] Available at: https://techcrunch.com/2022/03/01/faraday-future-pivots-to-crypto-and-ai-as-car-sales-falter/
[4] Bloomberg. (2022). ETHZilla Raises $565 Million in Private Funding. [online] Available at: https://www.bloomberg.com/news/articles/2022-03-01/ethzilla-raises-565-million-in-private-funding
[5] The Block. (2022). ETHZilla: The New Ethereum Treasury Management Company. [online] Available at: https://www.theblockcrypto.com/post/97160/ethzilla-the-new-ethereum-treasury-management-company
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