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- 180 Life Sciences plans a $425 million private placement to shift to Ethereum as its treasury asset.
- The company will rebrand to ETHZilla Corporation and focus on crypto-native yield strategies.
- Backed by over 60 major Ethereum and traditional finance investors, the deal closes August 1.
180 Life Sciences, a Nasdaq-listed firm, is making a bold move into the crypto space. The company has announced a $425 million private placement to back its rebrand as ETHZilla Corporation. With the deal set to close on August 1, ETHZilla will place Ethereum (ETH) at the center of its treasury strategy.
The company will use the proceeds received to buy ETH, marking a full pivot into the blockchain company. A purchase price of an aggregate of $2.65 per share has been settled on in the offering. The private investment in public equity or PIPE transaction also includes pre-funded warrants, as needed.
The investors will be given registration rights so resale in later public filings can occur. In association with this move, the company also has authorization for another $150 million of debt securities. The issue of the debt will occur after the close of the PIPEs and will be subject to separate agreements.
Ethereum-Focused Shift with Strategic Backing
ETHzilla will be a public entity that owns the ETH.The firm will seek to capitalize on market leader Ethereum and yield generation. Electric Capital will conduct treasury management of the ETH in a specially designed on-chain environment. The platform will try to compete better than staking in the classical sense but be risk-sensitive.
The deal of investment may involve lending, liquidity provision, and discreet transactions in cryptos. More than 60 institutions and seasoned investors in cryptos have featured in the deal. Some of them include GSR, Omicron Technologies, Harbour Island, and Polychain. Some of the individual investors are the founders of Compound, Ether.fi, Gauntlet, Frax, and Etherealize.
Etherealize will be an ecosystem key partner. It will head a DeFi Council to oversee the treasury deployment and yield optimization of ETHZilla. These advisors have extensive familiarity with the infrastructure of Ethereum and prolonged experience working with DeFi protocols.
Rebranding Signals Long-Term Ethereum Bet
ETHZilla’s management should continue after the rebrand. The goal is to give public market investors a direct way of gaining exposure to Ethereum. In close partnership with the pre-eminent builders and allocators of the Ethereum ecosystem, ETHZilla stands out.
ETH treasury model, coupled with experienced strategic advice, will be able to support the business in delivering long-term shareholder value. ETHZilla is building itself as a new-era financial institution designed for the blockchain investment era.
The transaction is in line with the public business community’s increasing trend of adopting crypto-native assets. With Ethereum celebrating a decade of momentum, the future of ETHZilla is pinned on the continued ascendancy of the protocol in the digital world.
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