ETHZilla Raises $350 Million Through Convertible Debenture
ETHZilla Corporation announced a $350 million add-on convertible debenture investment. The funds come from its existing institutional partner. This new investment builds on a prior $156.5 million convertible debt deal. The debentures will carry a 2% annual interest rate starting February 2026.
The conversion price is set at $3.05 per share. This price equals 1.05 times the company’s market net asset value (mNAV). ETHZilla will manage a nearly $500 million portfolio of interest-bearing securities. This portfolio aims to generate excess interest income.
Chairman and CEO McAndrew Rudisill said, “ETHZilla is committed to being a responsible steward of shareholder capital. Our strategy is to deploy ETH into Layer 2 protocols and tokenize real-world assets to create sustainable free cash flow on the Ethereum network.”
ETHZilla’s Business Update and Strategy
The company reported growth in its Ethereum reserves and stock repurchases. ETHZilla bought about 500,000 shares at an average price of $2.41. Its total Ethereum holdings now equal 102,264 ETH, valued at around $462 million.
ETHZilla generates additional cash by using ETH in Layer 2 protocols. It also invests cash in U.S. Treasuries and commercial paper. The firm plans to tokenize real-world assets to boost revenue streams.
Upcoming ETH Dashboard and Financial Guidance
ETHZilla plans to launch an ETH dashboard soon. This tool will provide real-time insights into its treasury and on-chain yield strategies. The company will update its financial guidance for the rest of 2025 in the Q3 earnings report.
For more details, see the official press release.
