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ETHZilla, a newly rebranded Ether treasury firm, saw shares tumble nearly 30% Friday after a filing revealed that private placement shareholders can now sell up to 74.8M convertible shares.
What’s the Scoop?
- Dilution Impact: Outstanding ETHZ shares rose by about 46%, from 164.4M to 239.3M. The company already received proceeds from the sale and this event is not related to a new offering.
- Treasury Pivot: ETHZilla rebranded earlier this month from 180 Life Science, announcing it holds 82,186 ETH worth $349M. Peter Thiel’s Founders Fund owns a 7.5% stake in ETHZ.
- Market Disconnect: Despite ETH price rising 9% on the day and U.S. equities trending higher after Fed Chair Powell’s Jackson Hole remarks, ETHZ shares moved sharply lower, highlighting investor unease around the implications of this filing.
Bankless Take:
Registering to sell shares does not constitute immediate share sales; it merely provides private placement holders with the ability to sell in the future. Amid a backdrop of pumping ETH prices, ETHZ could make for an interesting play at these discounted levels.
WTF is ETHzilla $ETHZ?
— Justin Spittler (@JSpitTrades) August 22, 2025
And why is it down 30% when $ETH is ripping? 🤣 pic.twitter.com/cLYsdJSSzj
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