ETHZilla Sells $74.5 Million in Ethereum to Redeem Convertible Notes
ETHZilla’s recent ETH sale marks a return to real-world asset tokenization strategy amid severe stock declines and ongoing debt repayment efforts.
ETH
Fact Check
The assessment is based on exceptionally strong evidence, primarily from the company's own official announcement. A direct statement from ETHZilla's X (Twitter) account, a primary source with high authority, explicitly confirms every element of the claim: the sale of 24,291 ETH, the resulting value of approximately $74.5 million, and the specific purpose of redeeming senior secured convertible notes. This primary evidence is further corroborated by multiple independent and reputable financial news sources, including TipRanks and Phemex, which report the same details. The company's shareholder letter also confirms transactions related to convertible notes, supporting the stated motive.There is one minor piece of conflicting evidence from a news aggregation site that reports a sale of $40 million. However, this single report from a source with lower authority is heavily outweighed by the direct, primary source confirmation from ETHZilla itself and the consensus among several other, more authoritative secondary sources. Therefore, the statement is considered highly likely to be true.
Summary
ETHZilla sold 24,291 ETH worth $74.5 million to repay convertible bond debt, less than six months after adopting an Ethereum-focused asset strategy. The move reduces its ETH reserves and signals a strategic pivot back to real-world asset tokenization. This follows a $40 million ETH sale in Q4 2024 for share buybacks, and comes as the company’s stock has plunged about 96% since August, reflecting broader pressures on public crypto treasury firms.
Terms & Concepts
- Ethereum (ETH): A decentralized blockchain platform with its native cryptocurrency Ether, used for executing smart contracts and decentralized applications.
- Convertible bond debt: A type of corporate debt that can be converted into a predetermined number of the issuing company’s shares, often used to raise capital with potential equity upside.