tl;dr
180 Life Sciences is raising $425 million through a PIPE offering at $2.65 per share to establish an Ethereum treasury and rebrand as ETHZilla. The company plans to raise an additional $150 million via debt to buy Ethereum. Incoming Chairman McAndrew Rudisill emphasized Ethereum’s utility and aims t...
Publicly traded biotech company 180 Life Sciences is embarking on a bold new venture by raising $425 million to establish an Ethereum treasury, alongside rebranding itself as ETHZilla. The firm announced its private investment in public equity (PIPE) offering at $2.65 per share, drawing participation from over 60 institutions and crypto-native investors. Following this, ETHZilla aims to secure an additional $150 million via debt securities to purchase Ethereum (ETH).
Incoming Chairman McAndrew Rudisill highlighted Ethereum’s value, emphasizing its utility in building applications and financial tools that manage assets and generate yield. He envisions creating a true yield curve on Ethereum, which the firm can leverage to generate consistent returns. ETHZilla joins a growing list of publicly traded companies integrating Ethereum’s financial ecosystem into their treasury strategies, similar to SharpLink Gaming’s ETH staking approach.
ETHZilla plans to collaborate with external asset manager Electric Capital to implement a “differentiated, on-chain yield generation program.” This program aims to outperform traditional ETH staking by generating yields between 3-10%, contingent on market conditions. Rudisill believes Electric Capital’s specialized expertise will give ETHZilla a competitive edge among other Ethereum treasury holders.
The company anticipates that income from Electric Capital’s yield programs will produce positive EBITDA and free cash flow, allowing reinvestment in their business operations. ETHZilla positions itself as a high-margin, fixed operating leverage business, distinguishing its treasury vehicle model from others in the market. Following the announcement, shares (ATNF) surged over 10% to $3.22, despite trading nearly 99.91% below their historical peak exceeding $3,685 per share.
ETHZilla’s rebranding, inspired by Godzilla, symbolizes its ambition to become a dominant player in the Ethereum treasury space. The company’s strategy focuses on aggressive ETH acquisition and redeployment of yield-generated cash flows to expand its Ethereum holdings. Rudisill affirmed the firm’s commitment to becoming one of the largest ETH holders globally through this innovative treasury approach.