Nasdaq-listed Ethzilla has sold 24,291 ether for about $74.5 million to redeem senior secured convertible notes. This marks the company's second such sale from its cryptocurrency treasury this year. The move reflects broader pressures on digital asset firms to manage liabilities amid falling stock prices.
Ethzilla, a firm originally formed to build a reserve of ether, the second-largest cryptocurrency, announced late Friday that it sold 24,291 ETH at an average price of $3,068. The proceeds, totaling roughly $74.5 million, will be used to redeem outstanding senior secured convertible notes as per an agreement signed earlier in December.
This sale follows a similar transaction in October, when Ethzilla offloaded $40 million worth of ether to fund share repurchases. Despite that effort, the company's stock has continued to decline. Shares fell 4% on Monday and have lost about 96% of their value from August highs, trading below $7 compared to around $20 when the October buyback was announced.
After the latest sale, Ethzilla retains approximately 69,800 ETH, valued at more than $200 million. The firm indicated in a regulatory filing that it may pursue further capital raises through additional ETH sales or equity offerings to support its business plans.
The action highlights challenges facing public companies with digital asset treasuries. Many that raised funds earlier this year to accumulate cryptocurrencies now trade below the net asset value of their holdings. As stock prices have slumped more sharply than underlying crypto values, these firms are shifting from asset accumulation to liability management, often by liquidating reserves.
