According to reports, the Ethereum reserve company ETHZilla plans to raise an additional $350 million through newly issued convertible bonds. The funds will be used to further increase its holdings of Ethereum and generate returns through investments in the ecosystem.
ETHZilla's Chairman and CEO McAndrew Rudisill stated on Monday that the company's strategy is to deploy Ethereum in "cash flow assets" within the Ethereum network, achieved through Layer-2 protocols and the tokenization of real-world assets (RWA).
According to Cointelegraph in August, executives in the crypto industry indicated that this could drive a new wave of summer enthusiasm in DeFi. An increasing number of digital asset companies are shifting from merely holding cryptocurrencies to actively participating in the ecosystem to generate returns.
Based on the financial data disclosed by the company, as part of its ecosystem participation, the Ethereum reserve company has acquired 1.5 million undisclosed tokens.
The company stated that ETHZilla continues to actively deploy capital in the Ethereum ecosystem, strategically supporting diverse protocols, driving innovation, promoting long-term network growth, and achieving differentiated returns.
The company previously raised $156.5 million through convertible bonds, and with the latest $350 million, its total funding pool has exceeded $506 million.
If all the raised funds are used to purchase Ethereum, ETHZilla could increase its holdings by an additional 120,000 tokens, bringing its total holdings to 1.02 million tokens, with a total value exceeding $428 million.
The company was formerly a Nasdaq-listed biotechnology firm, Life Sciences Corp, and changed its name to ETHZilla Corporation in July this year, fully transforming into an Ethereum investment company.
Among 69 listed companies, ETHZilla is the eighth largest Ethereum reserve company, holding a total of 5.25 million tokens, with a total value exceeding $2.2 billion, accounting for 4.25% of the circulating supply.
Tom Lee's BitMine Immersion Technologies ranks first with 2.4 million Ethereum tokens, while Sharplink Gaming ranks second with 838,000 tokens.
The company was established in 2016 as a clinical-stage biotechnology firm and went public in 2020, but since its initial public offering, its stock price has plummeted by over 99% in five years.
The significant drop in stock price is primarily due to insufficient revenue, continuously expanding losses, and multiple fundraising efforts through shareholder dilution.
Since the beginning of this year, the company's stock price has increased by 31%, with August being the best-performing month, where the stock price briefly rose to $10.70.
In the previous trading day, ETHZilla's stock price fell by 5% during regular hours but rose by 2% in after-hours trading, closing at $2.45.
Related: BitMine announces $365 million in new funding, holding over 2% of Ethereum (ETH) supply
Original article: “ETHZilla Launches $350 Million New Fund Pool to Bet on Ethereum (ETH)”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
