Ethereum News Today: ETHZilla Rebrands as $425M Ethereum Investment Drives 95% Cash Shift to DeFi

ETHZilla Corporation, formerly 180 Life Sciences Corp., has confirmed its rebranding following a $425 million investment in Ethereum (ETH), marking a strategic pivot from biotech to decentralized finance (DeFi). The deal, set to close by August 1, 2025, will allocate 95% of the firm’s cash reserves to ETH, with Electric Capital overseeing on-chain yield strategies such as staking, liquidity provisioning, and private lending [1]. This shift positions ETHZilla as a major player in Ethereum’s ecosystem, leveraging institutional-grade risk management to optimize returns while navigating smart contract and regulatory risks [2].

The funding round attracted over 60 institutional and crypto-native entities, including Polychain Capital and founders of protocols like Lido and Compound. This broad institutional backing underscores confidence in ETHZilla’s thesis of active corporate engagement with blockchain ecosystems [3]. CEO Blair Jordan emphasized the initiative’s focus on “differentiated investment approaches,” aiming to capitalize on Ethereum’s public market opportunities despite inherent volatility [4]. The firm’s strategy diverges from traditional corporate Bitcoin treasury models, prioritizing active DeFi participation over passive accumulation.

ETHZilla’s move aligns with broader market trends. Standard Chartered analysts estimate that corporate Ethereum treasuries now hold 1% of the circulating supply, a figure projected to reach 10% if adoption rates persist [5]. The firm’s rebranding follows a surge in Ethereum-related investments by public companies, driven by regulatory signals and the asset’s integration into financial infrastructure. This trend mirrors recent actions by firms like SharpLink Gaming, which also added ETH to its reserves [6].

The rebranding reflects a high-stakes bet on Ethereum’s long-term trajectory. While the strategy could redefine corporate interactions with crypto markets—shifting from passive holding to active ecosystem participation—it introduces operational complexities. Challenges include liquidity risks, smart contract vulnerabilities, and regulatory uncertainties. Proponents argue that ETHZilla’s technical partnerships and institutional-grade management position it to capitalize on Ethereum’s innovation cycle, while critics highlight the volatility of DeFi yields and regulatory scrutiny [6].

Sources:

[1] CoinDesk, [https://www.coindesk.com/business/2025/07/29/new-ether-treasury-firm-ethzilla-emerges-with-usd425m-funding-and-a-defi-twist](https://www.coindesk.com/business/2025/07/29/new-ether-treasury-firm-ethzilla-emerges-with-usd425m-funding-and-a-defi-twist)

[2] CoinGape, [https://coingape.com/180-life-sciences-launches-425m-ethereum-treasury-rebrands/](https://coingape.com/180-life-sciences-launches-425m-ethereum-treasury-rebrands/)

[3] Bankless, [https://www.bankless.com/read/https-www-theblock-co-post-364668-180-life-sciences-ethereum-treasury-ethzilla](https://www.bankless.com/read/https-www-theblock-co-post-364668-180-life-sciences-ethereum-treasury-ethzilla)

[4] Crypto News, [https://crypto.news/180-life-sciences-bets-425m-on-ethereum-treasury-in-bid-to-become-ethzilla/](https://crypto.news/180-life-sciences-bets-425m-on-ethereum-treasury-in-bid-to-become-ethzilla/)

[5] Standard Chartered Report, [https://crypto.news/180-life-sciences-bets-425m-on-ethereum-treasury-in-bid-to-become-ethzilla/](https://crypto.news/180-life-sciences-bets-425m-on-ethereum-treasury-in-bid-to-become-ethzilla/)

[6] GuruFocus, [https://www.gurufocus.com/news/3013510/180-life-sciences-atnf-announces-425m-pipe-deal-for-ethereum-focus](https://www.gurufocus.com/news/3013510/180-life-sciences-atnf-announces-425m-pipe-deal-for-ethereum-focus)