In a dramatic pivot from biotechnology to blockchain, publicly traded company 180 Life Sciences (NASDAQ: ATNF) has announced its rebranding to ETHZilla. The move is backed by a substantial capital raise of $425 million, which will be used to establish a corporate treasury dedicated to Ethereum (ETH), the world’s second-largest cryptocurrency.
The company, which will now operate under the monstrous new moniker and the tagline “Unleash the zilla,” secured the funding through a private investment in public equity (PIPE) offering. According to a report from Decrypt, the offering saw participation from over 60 institutions and crypto-native investors at a purchase price of $2.65 per share. Following this transaction, ETHZilla plans to seek an additional $150 million through debt securities to further bolster its ETH holdings.
This strategic shift places ETHZilla among a growing number of public companies leveraging cryptocurrency assets to manage their treasuries. However, the company aims to do more than simply hold the digital asset. It has partnered with external asset manager Electric Capital to implement what it describes as a “differentiated, on-chain yield generation program.” This strategy is designed to outperform traditional ETH staking, with a goal of generating yields between 3% and 10%, depending on market conditions.
Incoming ETHZilla Chairman of the Board, McAndrew Rudisill, explained the rationale behind the move. “ETH is one of the most valuable cryptocurrencies in the world because it can be used for people to build apps and financial tools to manage assets and generate yield,” he told Decrypt. “A true yield curve will be built on Ethereum, and we can generate yield holding Ethereum.”
Rudisill emphasized that this strategy transforms the company into an operating business with a clear revenue stream. “The business will generate EBITDA and positive FCF from the yield generated by Electric’s programs, which we can reinvest in the business,” he stated. “No other treasury vehicle currently has this structure.”
Ethereum is a decentralized, open-source blockchain featuring smart contract functionality, which allows for the creation of decentralized applications (dApps) and financial instruments. Its native cryptocurrency, Ether (ETH), is used to power transactions and operations on the network. The platform’s robust ecosystem for decentralized finance (DeFi) has made it an attractive option for companies like ETHZilla and SharpLink Gaming, which are looking for innovative ways to generate returns on their capital.
The market responded positively to the news, with shares of ATNF closing up over 10% at $3.22 on the day of the announcement. However, this recent surge comes after a prolonged downturn for the company. The stock remains down approximately 99.9% from its all-time high of over $3,685 per share, a fact that underscores the high-stakes nature of this transformation. The company’s new leadership is betting that a bold, crypto-centric strategy can reverse its fortunes.
The rebranding to ETHZilla is a clear signal of its new, singular focus. “ETHZilla was born to acquire a large amount of ETH and to redeploy cash flow generated from yield to acquire more ETH,” Rudisill said. “The name comes from our focus to be one of the largest holders of ETH in the world.” This move represents one of the most significant integrations of a digital asset into a publicly traded company’s core strategy to date, highlighting the increasing convergence of traditional finance and the burgeoning world of cryptocurrency.
