TL;DR
- ETHZilla Stock Surges: Shares jumped over 90% after Peter Thiel acquired a 7.5% stake, reflecting strong investor confidence in the firm’s Ethereum-focused pivot.
- Massive ETH Holdings: The company disclosed 82,186 ETH worth about $349 million, alongside $238 million in cash equivalents for liquidity and expansion.
- Strategic DAT Model: ETHZilla plans disciplined ETH accumulation without heavy leverage, aiming to generate on-chain yield through Electric Capital’s management.
Ethereum-focused ETHZilla, formerly 180 Life Sciences Corp., saw its stock price soar over 90% after filings revealed that billionaire investor Peter Thiel acquired a 7.5% stake through entities linked to his Founders Fund. The move comes as the company completes a dramatic pivot from biotech to a digital asset treasury (DAT) model, positioning itself as a major Ethereum reserve vehicle.
From biotech roots to Ethereum powerhouse
ETHZilla, formerly a biotech company, has changed its name and organizational structure to concentrate solely on building up and overseeing Ethereum holdings. The company revealed that it currently holds 82,186 Ethereum, which was bought at an average price of $3,806.71 and is currently worth over $349 million. Alongside this, it holds $238 million in USD cash equivalents, giving it significant liquidity to expand its crypto reserves.
Market reaction and capital raise
The announcement of Thiel’s stake sent ETHZilla’s shares, trading under ticker ATNF, from $3.25 to as high as $6.33 before settling near $5.07, still up more than 50% on the day. Earlier this month, the company closed a $425 million private placement involving over 60 participants, including Electric Capital, Polychain Capital, GSR, and prominent Ethereum ecosystem founders. This influx of capital has already been deployed to rapidly scale ETHZilla’s treasury.
Strategic positioning in the DAT trend
ETHZilla’s pivot mirrors a growing trend where smaller public companies transform into crypto accumulation vehicles, similar to Michael Saylor’s Bitcoin-focused strategy. However, Executive Chairman McAndrew Rudisill emphasized a disciplined approach, stating the firm will avoid excessive leverage in its Ethereum purchases. The company aims to generate on-chain yield through its external asset manager, Electric Capital, potentially turning its ETH reserves into a revenue stream for shareholders.
Broader implications for Ethereum markets
Thiel’s involvement adds high-profile validation to the DAT model for Ethereum, potentially encouraging other investors to view ETH as a long-term treasury asset. With substantial reserves, strong backers, and a clear focus on yield generation, ETHZilla could become a bellwether for institutional Ethereum adoption. The market will now watch whether its strategy delivers sustainable returns and influences ETH’s broader liquidity profile.
