ETHZilla Announces $350 Million Add-On Convertible Debenture Investment and Provides Business Update
ETHZilla (NASDAQ:ETHZ) has secured a significant $350 million convertible debenture investment from an institutional partner, amending terms of an existing $156.5 million debenture. The new debentures will carry a 2% annual interest rate with a conversion price of $3.05 per share.
The company's financial position includes 102,264 total ETH & ETH equivalents valued at approximately $462 million, plus $559 million in cash and cash equivalents. ETHZilla has been active in share repurchases, buying back 6.45 million shares in September, with 160,176,122 total shares outstanding.
The company focuses on deploying ETH into Layer 2 protocols and tokenizing real-world assets, maintaining transparency through its Market Net Asset Value (mNAV) methodology. ETHZilla plans to provide guidance for the remainder of 2025 in its Q3 earnings release.
ETHZilla (NASDAQ:ETHZ) ha ottenuto un significativo investimento convertibile debenture da 350 milioni di dollari da un partner istituzionale, modificando i termini di un debenture esistente da 156,5 milioni di dollari. I nuovi debentures avranno un tasso di interesse annuo del 2% con un prezzo di conversione di 3,05 dollari per azione.
La posizione finanziaria dell'azienda comprende 102.264 ETH e equivalenti ETH valutati a circa 462 milioni di dollari, più 559 milioni di dollari in liquidità e equivalenti. ETHZilla è stata attiva nel riacquisto di azioni, riacquistando 6,45 milioni di azioni a settembre, con 160.176.122 azioni in circolazione.
L'azienda si concentra sull'utilizzo di ETH nei protocolli Layer 2 e sulla tokenizzazione di asset del mondo reale, mantenendo la trasparenza attraverso la sua metodologia Market Net Asset Value (mNAV). ETHZilla prevede di fornire indicazioni per il resto del 2025 nel comunicato sui risultati del terzo trimestre.
ETHZilla (NASDAQ:ETHZ) ha asegurado una inversión sustancial de debentures convertibles de 350 millones de dólares de un socio institucional, enmendando los términos de un debentures existente de 156,5 millones de dólares. Los nuevos debentures tendrán un tasa de interés anual del 2% con un precio de conversión de 3,05 dólares por acción.
La posición financiera de la empresa incluye 102.264 ETH y equivalentes de ETH valorados en aproximadamente 462 millones de dólares, más 559 millones de dólares en efectivo y equivalentes. ETHZilla ha estado activa en recompras de acciones, comprando 6,45 millones de acciones en septiembre, con 160.176.122 acciones en circulación.
La empresa se centra en desplegar ETH en protocolos Layer 2 y tokenizar activos del mundo real, manteniendo la transparencia a través de su metodología Market Net Asset Value (mNAV). ETHZilla planea proporcionar orientación para el resto de 2025 en su comunicado de resultados del tercer trimestre.
ETHZilla (NASDAQ:ETHZ)가 기관 파트너로부터 3억 5천만 달러의 전환 가능한 채무를 확보했으며, 기존의 1억 5,650만 달러 채무의 조건을 수정했습니다. 새 채무는 연 2% 이자율을 가지며 전환 가격은 주당 3.05달러입니다.
회사의 재무상태는 ETH 102,264개 및 ETH 등가물이 약 4.62억 달러로 평가되고, 현금 및 현금성자산은 5.59억 달러입니다. ETHZilla는 9월에 또 다른 645만 주의 자사주를 매입했으며, 유통 주식 수는 1억 6,017만 6,122주입니다.
회사는 Layer 2 프로토콜에 ETH를 배치하고 실물 자산을 토큰화하는 데 집중하며, Market Net Asset Value (mNAV) 방법론을 통해 투명성을 유지합니다. ETHZilla는 2025년 남은 기간에 대한 가이던스를 3분기 실적 발표에서 제공할 예정입니다.
ETHZilla (NASDAQ:ETHZ) a obtenu un investissement important convertible debenture de 350 millions de dollars d’un partenaire institutionnel, en modifiant les termes d’un debenture existant de 156,5 millions de dollars. Les nouveaux debentures auront un taux d’intérêt annuel de 2% avec un prix de conversion de 3,05 dollars par action.
La position financière de la société comprend 102 264 ETH et équivalents ETH évalués à environ 462 millions de dollars, plus 559 millions de dollars en liquidités et équivalents. ETHZilla a été actif dans le rachat d’actions, ayant racheté 6,45 millions d’actions en septembre, avec 160 176 122 actions en circulation.
L’entreprise se concentre sur le déploiement d’ETH dans les protocoles Layer 2 et la tokenisation d’actifs du monde réel, en restant transparente via sa méthodologie Market Net Asset Value (mNAV). ETHZilla prévoit de communiquer ses orientations pour le reste de 2025 dans son communiqué sur les résultats du T3.
ETHZilla (NASDAQ:ETHZ) hat eine bedeutende Convertible Debenture-Investition über 350 Millionen Dollar von einem institutionellen Partner gesichert und die Bedingungen einer bestehenden Debenture über 156,5 Millionen Dollar geändert. Die neuen Debentures werden einen jährlichen Zinssatz von 2% tragen und einen Umwandlungspreis von 3,05 USD pro Aktie haben.
Die finanzielle Position des Unternehmens umfasst 102.264 ETH und ETH-Äquivalente, bewertet auf ca. 462 Millionen USD, zuzüglich 559 Millionen USD in Barmitteln und Barmitteläquivalenten. ETHZilla war aktiv beim Aktienrückkauf und hat im September 6,45 Millionen Aktien zurückgekauft, bei insgesamt 160.176.122 Aktien im Umlauf.
Das Unternehmen konzentriert sich auf den Einsatz von ETH in Layer-2-Protokollen und die Tokenisierung realer Vermögenswerte, wobei Transparenz durch die Market Net Asset Value (mNAV)-Methodik gewahrt wird. ETHZilla plant, im Q3-Gang hoice für das restliche Jahr 2025 in der Gewinnmitteilung bekanntzugeben.
ETHZilla (NASDAQ:ETHZ) قد أمنت استثماراً هاماً بمشروd سندات قابلة للتحويل بقيمة 350 مليون دولار من شريك مؤسسي، مع تعديل شروط سند قابل للتحويل قائم بقيمة 156.5 مليون دولار. ستحتوي السندات الجديدة على معدل فائدة سنوي بنسبة 2% مع سعر تحويل قدره 3.05 دولارات للسهم.
الوضع المالي للشركة يتضمن 102,264 ETH وما يعادلها من ETH بقيمة تقارب 462 مليون دولار، إضافة إلى 559 مليون دولار من النقد وما يعادله. كانت ETHZilla نشطة في إعادة شراء الأسهم، حيث اشترت 6.45 مليون سهم في سبتمبر، ليصل إجمالي الأسهم القائمة إلى 160,176,122 سهم.
تركّز الشركة على نشر ETH في بروتوكولات Layer 2 وترمزة الأصول الواقعية، مع الحفاظ على الشفافية من خلال منهجية Market Net Asset Value (mNAV). تخطط ETHZilla لتقديم التوجيه لبقية عام 2025 في بيان أرباحها للربع الثالث.
ETHZilla (NASDAQ:ETHZ) 已从一家机构伙伴获得一笔重要的3.5亿美元可转换债券投资，对现有1.565亿美元债券的条款进行了修改。新债券的年利率为2%，转股价格为每股3.05美元。
公司财务状况包括102,264枚ETH及ETH等价物，估值约为4.62亿美元，加上5.59亿美元的现金及现金等价物。ETHZilla在回购股票方面也很活跃，9月回购了645万股，总流通股本为1,601,761,22股。请注意应为“160,176,122股”。
公司重点将ETH部署到Layer 2协议并对现实世界资产进行代币化，通过其Market Net Asset Value (mNAV)方法保持透明度。ETHZilla计划在其第三季度的业绩发布中，对2025年剩余时间提供指引。
- Secured additional $350 million in convertible debenture financing
- Reduced interest rate on existing $156.5M debenture from 4% to 2%
- Holds substantial assets: $462M in ETH and $559M in cash equivalents
- Active share repurchase program with 6.45M shares bought in September
- Diversified revenue streams through Layer 2 protocols and treasury investments
- Significant debt burden with approximately $556M in convertible debt
- Potential dilution risk from convertible debentures at $3.05 per share
- Trading below NAV with mNAV ratio of 0.87x
- High exposure to ETH price volatility affecting financial statements
Insights
ETHZilla secured $350M in convertible debentures at favorable terms while maintaining strong ETH position and cash reserves of $559M.
ETHZilla's $350 million convertible debenture deal represents a significant strengthening of their capital structure while simultaneously improving terms on existing debt. The new debentures carry a 2% interest rate with a conversion price of $3.05 per share (1.05x their Market Net Asset Value), while existing $156.5M debentures will maintain 0% interest until February 2026 before shifting to just 2% (down from the original 4%).
The company's financial position shows impressive strength with $559 million in cash and cash equivalents alongside 102,264 ETH and ETH equivalents valued at approximately $462 million. Their ETH strategy involves not just holding the cryptocurrency but deploying it across Layer 2 protocols to generate yield - specifically across three protocols containing 12,828, 45,000, and 10,600 ETH-equivalent units respectively.
Their market-to-NAV ratio (mNAV) of 0.87x suggests the company is trading at a discount to its ETH holdings value. The company's ongoing share repurchase program, which bought back approximately 0.5 million shares at $2.41 average price in the most recent week (reducing outstanding shares by 0.3%), demonstrates management's belief that shares are undervalued.
What's most notable about ETHZilla's strategy is their focus on generating recurring cash flow from Ethereum assets, rather than simply speculating on price appreciation. By deploying ETH into Layer 2 protocols and exploring real-world asset tokenization, they're positioning themselves as a DeFi technology company with multiple revenue streams beyond just cryptocurrency appreciation. Their substantial cash position also provides significant operational flexibility in the volatile cryptocurrency market.
Convertible Debenture Investment Details
ETHZilla partnered with the existing convertible debenture investor to amend the terms of the existing convertible debenture and to raise an additional
The previously issued
"ETHZilla, is committed to being a responsible steward of our shareholders' capital," said McAndrew Rudisill, Chairman and Chief Executive Officer of ETHZilla. "We are a DeFi technology company focused on building our capital reserves to deploy ETH into cash flowing assets. As we pursue our strategy of deploying ETH into Layer 2 protocols and tokenizing real-world assets to generate free cash flow on the Ethereum network, we are providing transparency into ETHZilla's mNAV and the methodology behind the calculation*. We believe our business model is highly scalable, with significant fixed operating leverage and recurring positive cash flow. We plan to provide guidance for the remainder of 2025 in our Q3 earnings release. We believe that ETHZilla is well positioned for continued growth with the support of our institutional shareholders."
Clear Street served as exclusive financial advisor to the Company.
*See "Supplemental Measures" below.
Business Update*
The Company today introduced additional detail and metrics relating to other sources of cash flow and ETH NAV and mNAV calculation. In addition to holding Ether ("ETH"), the Company generates cash flows from ETH deployed to Layer 2 protocols, its cash balance invested in
ETHZilla's mNAV and ETH NAV are calculated as follows1:
$ | 405 | |
Convertible Debt + OTC SWAP | $ | (556) |
Cash & Cash Equivalents | $ | 559 |
$ | 403 | |
ETH NAV | $ | 462 |
mNAV | 0.87x |
1. | As of September 19th, 2025. All numbers are in millions of USD, aside from mNAV |
Update on Stock Repurchase Program
The Company repurchased approximately 0.5 million shares at an average price of
ETH Deployment and Accumulation Update
A summary of ETHZilla's current ETH position and key metrics as of September 19, 2025:
- Total ETH & ETH Equivalents Held: 102,264
- Total ETH & ETH Equivalents Held (USD) (ETH NAV): approximately
$462 million - Total USD Cash & Cash Equivalents: approximately
$559 million - Total Earned Protocol Tokens: 1,500,000
- Total Shares Outstanding: 160,176,122
Total ETH Units | Total Units | Acquisition Price | Total Value | ||
ETH | 33,836 | $ 3,948.72 | |||
Protocol 1 | 12,828 | $ 3,948.72 | $ 58,000,000 | ||
Protocol 2 | 45,000 | $ 3,948.72 | |||
Protocol 3 | 10,600 | $ 3,948.72 | $ 47,000,000 | ||
Earned Incentive Tokens | 1,500,000 | $ 2,000,000 | |||
USD Cash & Cash Equivalents | |||||
102,264 | 1,500,000 |
ETHZilla continues to actively deploy capital across the Ethereum ecosystem, strategically supporting a diverse range of protocols that drive innovation, long-term network growth, and differentiated yield.
Weekly ETH and Capital Summary
WEEK ENDING | |||||
Units of ETH (K) | 8/31/2025 | 9/5/2025 | 9/12/2025 | 9/19/2025 | |
Beginning Balance | 102.2 | 102.2 | 102.2 | 102.3 | |
ETH Acquired | 0.0 | 0.0 | 0.0 | 0.0 | |
Ending Balance | 102.2 | 102.2 | 102.3 | 102.3 | |
Avg ETH Purchase Price | $ 3,949 | $ 3,949 | $ 3,949 | $ 3,949 | |
ATM Shares Issued (m) | 2.4 | - | - | - | |
ATM Net Proceeds ($m) | $ 7.3 | - | - | - | |
The Company will continue to provide updates to its treasury and on-chain yield generation strategies through press releases and regulatory filings as available and expects to transition to an ETH dashboard in the coming weeks.
Supplemental Measures
The Company uses ETH NAV and mNAV, to help assess the performance of its strategy of acquiring and deploying ETH and ETH Equivalents in a manner the Company believes is accretive to shareholders. The Company believes that ETH NAV and mNAV can assist investors in understanding how the Company chooses to fund purchases of and deploy ETH and ETH Equivalents and the value created by such purchases. These metrics have inherent limitations including not taking into account that our assets are subject to all existing and future liabilities. These metrics are not, and should not be understood as, financial performance, valuation, or liquidity measures. These metrics may not be comparable to similarly titled measures of other companies. Other companies, including other companies with digital asset treasuries, may calculate these or similarly titled metrics differently, limiting the usefulness of those measures for comparative purposes.
As used by the Company:
- ETH NAV: Represents the total number of ETH and ETH Equivalents the Company holds as of a specified date multiplied by the current market price of one ETH (or the price of one ETH as of the date indicated based on the CME CF Ether Dollar Reference Rate). It does not take into account or include the Company's indebtedness.
- mNAV: Represents Enterprise Value (EV) divided by ETH NAV as of the specified date. EV is calculated as (A) the total market value of all outstanding ETHZ common stock, calculated by multiplying the number of outstanding shares of common stock by the closing price on the Nasdaq Capital Market on the applicable date. the closing price on the Nasdaq Capital Market on the applicable date, plus (B) the aggregate principal amount of the Company's indebtedness, less (C) the Company's Cash & Cash Equivalents.
These measures are not, and should not be understood as, financial performance, valuation or liquidity measures. Specifically, although each of these measures incorporates the label "NAV," they are not equivalent to "net asset value" or "NAV" or any similar metric in the traditional financial context. Additionally, each of these measures is not a measure of the amount by which the enterprise value exceeds net asset value in the traditional financial sense of those terms.
The trading price of the Company's common stock is informed by numerous factors in addition to Company's ETH holdings and its actual or potential shares of common stock outstanding, and as a result, the trading price of the Company's securities can deviate significantly from the market value of the Company's ETH, and neither ETH NAV nor mNAV, are indicative or predictive of the trading price of the Company's securities.
Investors should rely on the financial statements and other disclosures contained in the Company's SEC filings. In particular, the Company has adopted Accounting Standards Update No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets ("ASU 2023-08"), which requires that the Company measure its ETH holdings at fair value in its statement of financial position as of the end of a reported period, and recognize gains losses from changes in the fair value in net income for the reported period. As a result, the Company recognizes gains and losses from changes in the fair value of our ETH holdings in net income each reporting period, which may create significant volatility in our reported earnings and decrease the carrying value of our digital assets, which in turn could have a material adverse effect on the market price of the Company's common stock. Conversely, any sale of ETH at prices above our carrying value for such assets creates a gain for financial reporting purposes even if the Company would otherwise incur an economic or tax loss with respect to such transaction, which also may result in significant volatility in the Company's reported earnings.
As noted above, these metrics are narrow in their purpose and are used by management to assist it in assessing whether the Company is raising and deploying capital in a manner accretive to shareholders solely as it pertains to its ETH holdings.
These metrics are merely supplements, not substitutes to the financial statements and other disclosures contained in the Company's SEC filings. They should be used only by sophisticated investors who understand their limited purpose and many limitations.
About ETHZilla
ETHZilla Corporation is a technology company in the decentralized finance industry. ETHZilla seeks to connect financial institutions, businesses and organizations worldwide by enabling secure, accessible blockchain transactions through Ethereum Network protocol implementations. It generates recurring revenues through various decentralized finance ("DeFi") protocols that improve Ethereum network integrity and security. ETHZilla believes it has the unique capability to bring traditional assets on-chain via tokenization. Through its proprietary protocol implementations, ETHZilla facilitates DeFi transactions and asset digitization across multiple Layer 2 Ethereum networks. ETHZilla is working to offer tokenization solutions, DeFi protocol integration, blockchain analytics, traditional-to-digital asset conversion gateways, and other decentralized finance services.
Forward Looking Statements
This press release contains "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected benefits of the Company's convertible debenture amendments and issuances, prior private placements and related transactions, recent OTC transaction, the amount, timing, and sources of funding for its previously announced stock repurchase program, the fact that common stock share repurchases may not be conducted in the timeframe or in the manner the Company expects, expectations regarding the capitalization, resources and ownership structure of the Company, expectations with respect to future performance, reoccurring revenue, and growth of the Company; the ability of the Company to execute its plans, the Company's plans to continue to purchase ETH, the Company's digital asset treasury strategy, the digital assets to be held by the Company, the Company's current and anticipated yield strategies, including its participation in DeFi protocols, and future performance. Forward looking statements are subject to numerous risks and uncertainties, many of which are beyond the Company's control, and actual results may differ materially. Applicable risks and uncertainties include, among others, the risk that the proposed transactions described herein may not be completed in a timely manner or at all; failure to realize the anticipated benefits of the previously announced private placements, sale of convertible notes, and related transactions, including the Company's digital asset treasury strategy; the Company's ability to achieve profitable operations; fluctuations in the market price of ETH that will impact the Company's accounting and financial reporting; government regulation of cryptocurrencies and online betting; the Company's ability to repurchase shares of common stock, the timing thereof, purchase price thereof, and the fact that repurchases may not be undertaken under the stock repurchase program; changes in securities laws or regulations; changes in business, market, financial, political and regulatory conditions; risks relating to the Company's outstanding convertible notes, including the Company's ability to repay such notes, covenants associated therewith and dilution caused by the conversion thereof into common stock, and security interests associated therewith; risks relating to the Company's OTC transaction, including the Company's ability to repay such facility, covenants associated therewith and security interests associated therewith; risks relating to the Company's previously announced ATM offering, including potential downward pressure on the Company's stock price associated therewith; risks relating to the Company's operations and business, including the highly volatile nature of the price of Ether and other cryptocurrencies; the risk that the Company's stock price may be highly correlated to the price of the digital assets that it holds; risks related to increased competition in the industries in which the Company does and will operate; risks relating to significant legal, commercial, regulatory and technical uncertainty regarding digital assets generally; risks relating to the treatment of crypto assets for
Media Contact:
Prosek Partners
pro-ETH@prosek.com
Investor Contact:
Prosek Partners
ETHZ-IR@prosek.com
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SOURCE ETHZilla Corporation
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