The 180 Life Sciences Corp, classified Nasdaq, plans to invest massively in ether and rename itself as an ethzilla Corporation, a strategic pivot away from its biotechnological origins in the midst of increasing losses.
On Tuesday, the company announced a private investment of $ 425 million aimed at building an ether cash reserve (ETH). Funds are collected thanks to a private investment in an agreement on public shares (PIP) involving the sale of ordinary shares, a structure often used by investors focused on crypto.
In addition, the company revealed that it had the approval to issue up to $ 150 million in debt securities.
Once the Treasury Ether has been established, the venture capital company Electric Capital will act as an external manager of the company, supervising the production of elements thanks to various activities of Onchain.
Founded in 2016 as a biotechnology company at a clinical stage, 180 life sciences have become public in 2020. Since its initial public offer (IPO), the action has plunged more than 99.9%, now negotiating below $ 3.00 with a market capitalization of around $ 17 million.
The sharp drop is widely attributed to a lack of income, increasing losses and a repeated dilution of shareholders to increase capital.
At the end of 2024, the company declared an accumulated deficit of more than $ 141.5 million and a working capital deficit of around 1.6 million dollars.
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180 life sciences started its corporate pivot last year, announcing plans to enter the online game market by adopting blockchain technology and launching an online casino.
Its change reflects a broader trend: hundreds of companies have added the crypto to their balance sheets, partly inspired by Michael Saylor’s strategy to acquire Bitcoin (BTC) as a treasury ratio from 2020.
More recently, Mill City Ventures, listed in Nasdaq, revealed plans to collect $ 441 million for a SU (Su) strategy; Agri-Tech Nature’s Miracle has announced up to $ 20 million in investments in XRP (XRP); And the Upexi consumer product company revealed a purchase of $ 16.7 million in Solana (soil).
According to Charles Schwab, more public enterprises use cryptographic cash strategies to increase stock prices.
“What some criticisms are disturbing this strategy is that many of these companies have started with an entirely different commercial objective,” said Schwab. “Putting big pieces of money in a historically volatile asset which is not linked to their core business has increased a red or two flag.”
Nevertheless, the trend does not show any signs of slowdown, because companies are looking more and more beyond Bitcoin for their crypto reserves. According to Standard Charted, companies could possibly have up to 10% of Ether’s total supply, because the cryptographic treasure strategies take momentum.
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