Dumping 24,000 Ether to repay debts! ETHZilla is abandoning the "Coin Hoarding" strategy and shifting to RWA tokenization.

ETHZilla (stock code: ETHZ), backed by Silicon Valley venture capital mogul Peter Thiel, has transformed into an Ether reserve company in less than half a year but suddenly hit the brakes. ETHZilla confirmed on Monday that it has sold $74.5 million worth of Ether in order to pay off company debts; at the same time, it announced that the company’s strategic focus will shift from simple “Coin Hoarding” to a business model with greater cash flow potential involving “Real World Asset (RWA) tokenization.”

This company, which was formerly the Nasdaq-listed biotech company 180 Life Sciences, is undoubtedly pouring cold water on the “Coin Hoarding craze” of publicly traded companies imitating Strategy.

ETHZilla announced on Monday that it has sold 24,291 Ether to redeem its outstanding preferred secured 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 valued at approximately 207 million USD based on the current market price. It is worth noting that this is not the first time the company has reduced its holdings; as early as October of this year, the company sold 40 million USD worth of Ether due to a 250 million USD stock buyback plan.

Strategic Turnaround: Shifting from Coin Hoarding to RWA Tokenization

In July of this year, this company just raised $425 million through a private investment in public equity (PIPE) model from over 60 investors, and boldly 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 drivers of value will come from the growth of revenue and cash flow from 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 simultaneously adjusted its information disclosure method, and starting today, it will stop updating the mNAV dashboard on the official website, retaining only regular disclosures of the balance sheet.

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

Looking back to August of this year, when the news broke that Peter Thiel invested in ETHZilla, the company's stock price soared by more than 90% at one point. However, with the recent weakness in Ether prices, the current trading price is around $3,000, and it has fallen nearly 30% over the past three months, leading to a correction in ETHZilla's stock price.

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

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

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Tags: ETHETHZETHZillaPeter ThielRWA public company tokenization Ether reserves cryptocurrency Coin Hoarding physical assets