ETHZilla Soars After Revealing Ethereum Treasury Plans

ETHZilla, formerly 180 Life Sciences, plans to rebrand and pursue an Ether treasury strategy. The biotechnology company now holds almost $350 million in Ether and plans to buy more. The stock jumped 70% after the announcement, with year-to-date gains of 500%. This move echoes Strategy's Bitcoin treasury strategy, which has seen the price of Bitcoin and the company's stock climb significantly.

In a significant strategic shift, ETHZilla, formerly known as 180 Life Sciences, has announced plans to rebrand and pursue an Ether treasury strategy. The biotechnology company, which originally focused on developing therapeutics for chronic pain, inflammation, and fibrosis, now holds nearly $350 million in Ether, the second-largest cryptocurrency after Bitcoin, and intends to acquire more. This move has led to a substantial increase in the company's stock price, with shares jumping by as much as 70% on Wednesday morning and year-to-date gains of approximately 500%.

The price of Ether hovered near all-time highs on Wednesday, trading at over $4,700 and adding close to half its value in 2025 amid optimism about a more crypto-friendly regulatory environment under the Trump administration. This move by ETHZilla echoes the playbook of Strategy (MSTR), formerly known as MicroStrategy, which has become the largest corporate holder of Bitcoin as part of its Bitcoin treasury strategy. The price of Bitcoin also reached near all-time highs, trading at about $121,600 and adding close to a third of its value in 2025.

The company's rebranding and strategic pivot have been well-received by investors, with shares surging 11% to $3.32 after selling $156 million in convertible notes at a conversion price of $3.445 per share. The proceeds from this offering will be used to purchase more Ether, reflecting the company's commitment to expanding its Ethereum holdings. This move is part of a broader $425 million private placement announced earlier, with the funds primarily earmarked for ETH acquisitions.

The stock market's positive reaction to the convertible notes offering underscores investor confidence in ETHZilla's strategic direction. However, the high volatility of Ethereum and the uncertain regulatory environment pose significant risks. ETHZilla's focus on Ethereum's utility, rather than speculative value, sets it apart from other corporate cryptocurrency investments. However, the company's aggressive rebranding and reliance on a single asset class diverge sharply from diversified corporate treasuries. For investors, the key is to assess ETHZilla's strategy within the context of their own risk tolerance.

ETHZilla's transformation is a testament to the disruptive potential of digital assets in corporate finance. However, its success hinges on three factors: Ethereum's price trajectory, the efficacy of Electric Capital's yield strategies, and regulatory clarity. Investors considering ETHZilla should treat it as a speculative, high-conviction position rather than a core holding. Diversification remains critical, and monitoring Ethereum's price action—alongside regulatory developments—will be essential. For those who believe in Ethereum's long-term vision and are comfortable with extreme volatility, ETHZilla offers a unique vehicle to participate in the blockchain revolution. But for others, the risks may outweigh the rewards.

References
[1] https://www.investopedia.com/ethzilla-follows-strategy-s-playbook-with-ethereum-treasury-plans-its-stock-is-soaring-11790308
[2] https://www.ainvest.com/news/180-life-sciences-stock-surges-156m-notes-sale-boost-ether-reserves-2508/
[3] https://mugglehead.com/180-life-sciences-shares-spike-76-on-crypto-company-rebrand/
[4] https://www.theblock.co/post/366571/ethzilla-stock-jumps-over-90-after-peter-thiel-takes-stake-and-company-discloses-82186-eth-holdings