Ethereum News Today: Nasdaq-listed 180 Life Sciences down 99.9% since 2020 IPO pivots to crypto with $425M ETH investment

Nasdaq-listed 180 Life Sciences Corp, a biotech firm that has seen its stock value plummet by more than 99.9% since its 2020 initial public offering, announced a strategic overhaul that includes a $425 million private placement to build an Ether (ETH) treasury and rebrand as ETHZilla Corporation. The company, now trading under the ticker ATNF, plans to use the proceeds from a private investment in public equity (PIPE) deal to fund its pivot from biopharmaceutical research to crypto-focused operations. The move also involves issuing up to $150 million in debt securities and engaging venture firm Electric Capital to manage onchain yield generation activities [1].

Founded in 2016 as a clinical-stage biotech firm, 180 Life Sciences has faced years of financial strain, including repeated shareholder dilutions, unmet clinical trial milestones, and regulatory setbacks. By the end of 2024, the company reported an accumulated deficit of $141.5 million and a working capital deficit of $1.6 million, with its market capitalization shrinking to roughly $17 million. The decision to pivot to ETH follows an earlier unsuccessful attempt to enter the blockchain-based online gaming sector, highlighting the company’s shift toward high-risk, alternative assets [1].

The strategic pivot aligns with a growing trend among publicly traded firms to allocate capital to cryptocurrency. This trend was inspired by MicroStrategy’s (now Strategic) Bitcoin treasury strategy, initiated in 2020. Similar moves have included Nasdaq-listed Mill City Ventures raising $441 million for a Sui (SUI) strategy and agri-tech firm Nature’s Miracle announcing a $20 million investment in XRP. Critics, however, question the logic of diverting resources from core business operations to speculative assets. Charles Schwab noted in an analysis that such strategies often raise red flags due to the mismatch between volatile crypto assets and traditional corporate objectives [1].

Standard Chartered has projected that corporate crypto treasury strategies could eventually hold up to 10% of Ether’s total supply, reflecting the sector’s growing appeal as a capital allocation tool. However, skeptics argue that the approach risks alienating stakeholders who prioritize long-term innovation in core industries. Dr. Emily Tran, a fintech and healthcare policy consultant, emphasized that biotech firms are expected to demonstrate commitment to scientific advancement rather than speculative bets [1].

180 Life Sciences’ board has defended the decision as a necessary adaptation to market realities. Board member Michael Chen stated that the crypto market’s volatility parallels the risks inherent in biotech R&D, justifying the ETH bet as a calculated long-term growth strategy. The firm’s leadership, including CEO Rick Stewart, framed the pivot as an opportunity to leverage emerging opportunities while addressing liquidity constraints.

The shift raises regulatory and investor concerns, particularly given the U.S. Securities and Exchange Commission’s heightened scrutiny of corporate crypto activities. Retail investors remain divided, with some viewing the pivot as a desperate gamble and others as a bold repositioning. If the ETH investment underperforms, the firm’s credibility and financial stability could face further strain, compounding its already precarious position [1].

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[1] Title: Down 99%, biotech firm 180 Life Sciences pivots to crypto with ETH bet

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