Nasdaq-listed 180 Life Sciences Corp intends to funnel substantial funds into Ether and rebrand as ETHZilla Corporation, marking a strategic shift away from its biotechnology roots in light of growing losses.
On Tuesday, the firm revealed a $425 million private placement designed to create an Ether (ETH) treasury reserve. The capital is being acquired through a private investment in public equity (PIPE) arrangement involving the issuance of common shares, a framework frequently employed by crypto-centric investors.
Additionally, the organization announced it has received authorization to issue as much as $150 million in debt securities.
Once the Ether treasury is set up, the venture firm Electric Capital will serve as the external manager for the company, supervising yield generation through various on-chain endeavors.
Established in 2016 as a clinical-stage biotechnology company, 180 Life Sciences became public in 2020. Since its initial public offering (IPO), its stock has plummeted over 99.9%, currently trading below $3.00 with a market valuation of roughly $17 million.
The steep decline is primarily attributed to an absence of revenue, escalating losses, and repeated shareholder dilution for capital acquisition.
As of the conclusion of 2024, the firm reported a cumulative deficit exceeding $141.5 million and a working capital deficit of around $1.6 million.
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180 Life Sciences initiated its corporate transition last year, revealing intentions to penetrate the online gaming sector by integrating blockchain technology and launching a digital casino.
This transition mirrors a wider trend: countless companies have incorporated crypto into their financial portfolios, partly fueled by Michael Saylor’s strategy of acquiring Bitcoin (BTC) as a treasury asset beginning in 2020.
More recently, Nasdaq-listed Mill City Ventures unveiled plans to gather $441 million for a Sui (SUI) strategy; agri-tech entity Nature’s Miracle announced investments up to $20 million in XRP (XRP); and consumer products company Upexi revealed a $16.7 million acquisition of Solana (SOL).
According to Charles Schwab, an increasing number of public corporations are implementing crypto treasury strategies to elevate share prices.
“Some critics express concern over this strategy, noting that many of these firms originally had completely different business purposes,” Schwab highlighted. “Investing large amounts of cash in a historically unpredictable asset that is not connected to their core operations raises a few red flags.”
Nevertheless, the pattern shows no signs of abating, as businesses are increasingly searching beyond Bitcoin for their crypto holdings. According to Standard Chartered, firms might ultimately possess up to 10% of Ether’s total supply as crypto treasury strategies gain traction.
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