Sell 24,000 Ether to pay off debts! The reserve company ETHZilla abandons Coin Hoarding and shifts focus to RWA tokenization.

ETHZilla's Coin Hoarding strategy has taken a sharp turn, selling $74.5 million in Ether to pay off debts, officially shifting towards RWA tokenization, pouring cold water on the coin hoarding craze for listed companies.

ETHZilla, which received investment from Silicon Valley venture capital king Peter Thiel (stock code: ETHZ), has transformed into an Ether reserve company for less than six months but has suddenly hit the brakes. ETHZilla confirmed on Monday that it has sold $74.5 million worth of Ether to settle company debts; at the same time, it announced that the company's strategic focus will shift from simple “Coin Hoarding” to the more cash flow potential business of “real-world asset (RWA) tokenization.”

This company, which was formerly the Nasdaq-listed biotech company 180 Life Sciences, has undoubtedly poured cold water on the frenzy of mimicking Strategy's “public company Coin Hoarding wave.”

ETHZilla announced on Monday that it has sold 24,291 Ether to redeem the company's outstanding priority guaranteed convertible bonds, and intends to use all or most of the proceeds for this redemption.

Even after this sell-off, ETHZilla still holds 69,802 Ether, which is worth approximately 207 million USD at current market prices. It is worth noting that this is not the first time the company has reduced its holdings; back in October this year, the company sold Ether worth 40 million USD due to a 250 million USD stock repurchase plan.

Strategic Turnaround: From “Coin Hoarding” to RWA Tokenization

In July of this year, the company just raised $425 million through a Private Investment in Public Equity (PIPE) model from over 60 investors and proudly announced the adoption of a digital asset reserve strategy, attempting to replicate the successful model of Strategy.

However, the honeymoon period seems to be shorter than expected. ETHZilla clearly stated: “Looking ahead, the company believes that the driving force of value will come from the revenue and cash flow growth of our RWA tokenization business.”

According to the blueprint released earlier this month, ETHZilla's RWA strategy will focus on the tokenization of assets such as auto loans, mobile home loans, aerospace equipment, and real estate.

It is worth noting that ETHZilla has synchronized adjustments to its information disclosure method, and will stop updating the mNAV dashboard on its official website starting today, only retaining regular disclosure of the balance sheet.

The so-called mNAV (Multiple of Net Asset Value) is a key indicator for measuring a company's market value relative to its net assets (the amount of cryptocurrency held) and is considered an important observation tool for valuing cryptocurrency reserve companies.

Looking back to August this year, when the news broke that Peter Thiel invested in ETHZilla, the company's stock price soared by over 90% at one point. However, with the recent weakness in Ether prices, currently trading around $3,000, having fallen nearly 30% over the past 3 months, ETHZilla's stock price has also corrected accordingly.

As of Monday's close, ETHZilla's stock price fell nearly 4%, closing at $6.64.

ETHZilla stated that in the future, during the process of promoting the company's business plans, it does not rule out the possibility of continuously supplementing the necessary funds for the company through the sale of Ether or conducting equity fundraising.

• This article is reprinted with permission from: “Blockchain Client”
• Original Title: “Selling 24,000 Ether to Pay Debt! ETHZilla Plans to Abandon the 'Coin Hoarding' Strategy and Shift to RWA Tokenization”
• Original Author: Block Girl MEL