ETHZilla: Priced Below NAV While Gaining a Presence in the Ethereum Ecosystem

crypthub

2 days ago

Pivot and Holdings

ETHZilla transformed from a cash‑strapped biotech to an Ethereum treasury and infrastructure firm. It now holds 102,326 ETH, valued at roughly $421 million, making it the fifth‑largest corporate ETH holder. The company rebranded from 180 Life Sciences in August and positions itself as an active participant in the Ethereum ecosystem rather than a passive holder.

Strategy and Partnerships

ETHZilla collaborates with DeFi and tokenization specialists such as Satschel and the restaking platform Puffer to stake, restake, and deploy ETH for yield generation. It acquired an iGaming subsidiary and has largely resolved legacy capital‑structure issues through share conversions and buybacks. Ongoing buybacks aim to retire shares and mitigate dilution while the firm expands its on‑chain services.

Financials and Risks

The stock trades at $20.65, about a 22 % discount to its NAV of $26.46 per share, presenting an attractive entry point. Dilution risks stem from $506 M of convertible debentures, a $425 M PIPE, and a $10 B at‑the‑market program, though conversion caps and coupons provide short‑term protection. Investors should watch ETH price volatility and potential dilution triggers, as these will drive the long‑term risk‑reward profile.