ETHZilla Announces $350 Million Add-On Convertible Debenture Investment and Provides Business Update

Summary of Key Points Core Viewpoint ETHZilla Corporation has announced a $350 million convertible debenture investment to enhance its capital reserves and support its strategy of deploying Ether (ETH) into cash-flowing assets, particularly through Layer 2 protocols and tokenization of real-world assets. The company emphasizes its commitment to transparency and scalability in its business model, which is expected to drive growth with institutional support. Group 1: Convertible Debenture Investment Details - ETHZilla has partnered with an existing investor to amend terms of previous convertible debentures and raise an additional $350 million through new convertible debentures [1][2] - The previously issued $156.5 million convertible debentures will maintain a 0% interest rate until February 6, 2026, and will then have a 2% annual interest rate, reduced from the original 4% [2] - The new debentures will also bear a 2% annual interest rate, with a conversion price set at $3.05 per share, which is 1.05 times the Market Net Asset Value (mNAV) [2] Group 2: Business Update and Cash Flow Sources - The company generates cash flows from ETH deployed to Layer 2 protocols, investments in U.S. Treasuries, and commercial paper, while exploring tokenization of real-world assets [4] - As of September 19, 2025, ETHZilla's market cap is approximately $405 million, with total cash and cash equivalents of about $559 million and an ETH NAV of approximately $462 million [5][7] - The company has repurchased approximately 0.5 million shares at an average price of $2.41, reducing shares outstanding by 0.3% during the week ending September 20, 2025 [5] Group 3: ETH Deployment and Accumulation - As of September 19, 2025, ETHZilla holds a total of 102,264 ETH and ETH equivalents valued at approximately $462 million [7][8] - The company continues to actively deploy capital across the Ethereum ecosystem, supporting various protocols that drive innovation and yield [8] - The total ETH position includes 33,836 ETH with a total value of $153 million, and additional holdings across multiple protocols [6][8]