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.<\/p>\n
On Tuesday, the firm revealed<\/a> a $425 million private placement designed to create an Ether (ETH<\/a>) 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.<\/p>\n Additionally, the organization announced it has received authorization to issue as much as $150 million in debt securities.<\/p>\n 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.<\/p>\n 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.<\/p>\n The steep decline is primarily attributed to an absence of revenue, escalating losses, and repeated shareholder dilution for capital acquisition.<\/p>\n As of the conclusion of 2024, the firm reported<\/a> a cumulative deficit exceeding $141.5 million and a working capital deficit of around $1.6 million.<\/p>\n Related: <\/strong><\/em>The Bitcoin treasury model is breaking, but Strategy\u2019s isn\u2019t. Here\u2019s why<\/strong><\/em><\/a><\/p>\n 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.<\/p>\n This transition mirrors a wider trend: countless companies have incorporated crypto into their financial portfolios, partly fueled by Michael Saylor\u2019s strategy of acquiring Bitcoin (BTC<\/a>) as a treasury asset beginning in 2020.<\/p>\n More recently, Nasdaq-listed Mill City Ventures<\/a> unveiled plans to gather $441 million for a Sui (SUI<\/a>) strategy; agri-tech entity Nature\u2019s Miracle<\/a> announced investments up to $20 million in XRP (XRP<\/a>); and consumer products company Upexi revealed a $16.7 million acquisition of Solana (SOL<\/a>).<\/p>\n According to Charles Schwab<\/a>, an increasing number of public corporations are implementing crypto treasury strategies to elevate share prices.<\/p>\n \u201cSome critics express concern over this strategy, noting that many of these firms originally had completely different business purposes,\u201d Schwab highlighted. \u201cInvesting large amounts of cash in a historically unpredictable asset that is not connected to their core operations raises a few red flags.\u201d<\/p>\n Nevertheless, the pattern shows no signs of abating, as businesses are increasingly searching beyond Bitcoin for their crypto holdings. According to Standard Chartered<\/a>, firms might ultimately possess up to 10% of Ether\u2019s total supply as crypto treasury strategies gain traction.<\/p>\nPenny stocks shift to crypto amid increasing business challenges<\/h2>\n