Shares of the newly branded ETHZilla Corp. (NASDAQ:ETHZ) sank over 4% in Monday's after-hours trading amid a dip in Ethereum (CRYPTO: ETH), its primary treasury asset.
ETHZ shares are sliding after hours. Get the update here.
Shaky Start For The ETH ‘Proxy’ Stock
ETH fell from $4,380 to $4,290 in the evening, potentially hurting the company’s value, which pivoted to an Ethereum treasury strategy earlier this month.
A New Chapter For 180 Life Sciences
ETHZilla, formerly 180 Life Sciences Corp., adopted its new brand and began trading under the ticker "ETHZ," according to a press release. The company said it would commit a "significant" part of its non-legacy operations to accumulate ETH for its balance sheet.
“Today, we are embracing our identity as ETHZilla and our commitment to developing a market-leading strategy that seeks to bring the value of Ethereum to investors in the public markets,” said McAndrew Rudisill, Executive Chairman of the company’s board.
The firm disclosed holdings of 94,675 ETH at an average acquisition price of $3,902.20, which is currently valued at roughly $406 million, becoming the fifth-largest corporate ETH holder, according to CoinGecko.
ETHZilla completed a $425 million private placement of common stock and pre-funded warrants and a $156.25 million convertible note offering, the proceeds of which will be used to buy more ETH. Billionaire venture capitalist Peter Thiel, through various Founders Fund entities, holds a 7.5% stake totaling 11.59 million shares in the firm.
The company said it is working to monetize its legacy biotech intellectual property assets.
See Also: Tom Lee’s $5 Billion Ethereum Bet Puts Bitcoin Maximalists On Notice
Price Action: At the time of writing, ETH was trading at $4,288.52, down 1.80% over the last 24 hours, according to data from Benzinga Pro.
ETHZilla shares slid 4.18% in after-hours trading after closing 5.26% higher at $7.41 during Monday’s regular trading session.
According to Benzinga’s Edge Stock Rankings, the stock has maintained its positive momentum over the short, medium and long term. Discover how this compares to Strategy Inc. (NASDAQ:MSTR), the largest cryptocurrency treasury company.
Photo Courtesy: Zakharchuk on Shutterstock.com
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