ETHZilla Sells 24,291 ETH to Redeem Convertible Notes, Exits Treasury Strategy
ETHZilla sold 24,291 ETH for approximately $74.5 million to redeem outstanding senior secured convertible notes, with an average price of about $3,068 per ETH. The early redemptions are scheduled for December 24 and December 30. Following this sale, ETHZilla's post-sale ETH holdings declined to around 69,800 ETH, valued at just over $200 million. In addition to the ETH sale, the company has cash on hand which will also be used to fund the redemptions.
ETHZilla has retired its modified net asset value (mNAV) dashboard and will now focus its disclosures on balance sheet updates, revenue growth, and cash flow from its real-world asset tokenization business. The firm's stock price declined approximately 4% on the trading day of the sale and is down about 96% from August highs, trading below the value of its remaining crypto assets.
The firm began accumulating ETH in late July. Earlier in the fourth quarter, it sold around $40 million worth of ETH to fund share repurchases. The largest ETH purchase was on August 12, consisting of over 82,000 ETH at an average price of $3,807, totaling more than $300 million. Additional purchases in August were made at higher prices, which resulted in a blended cost basis above long-term support and left the position underwater as ETH prices fell.
ETH treasuries across the sector are facing broad pressure. For example, BitMine Immersion Technologies reportedly holds billions in unrealized losses but continues to accumulate ETH. SharpLink Gaming remains committed to its holdings, while other firms such as Fundamental Global, The Ether Machine, and Quantum Solutions are also holding ETH below their average purchase price.
