Can ETHZilla’s $350M Bet on Ethereum & Tokenized Assets Pay Off Big?

Sean Williams
Ethereum

Ethereum cryptocurrency,

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  • ETHZilla raised $350M through convertible debentures with 2% annual interest.
  • Ethereum reserves now stand at 102,264 ETH, valued at $462M.
  • Plans include Layer 2 deployment, tokenization, and real-time ETH dashboard.

ETHZilla Corporation has unveiled a new capital plan, announcing a $350 million add-on convertible debenture investment from an existing institutional partner. Alongside the financing, the company shared an in-depth business update, highlighting its growing Ethereum (ETH) reserves, share buybacks, and ambitions to tokenize real-world assets.

$350M Debenture Deal Strengthens Balance Sheet

The new investment builds on ETHZilla’s earlier $156.5 million convertible debt arrangement. The updated structure includes an annual interest rate of 2% beginning in February 2026, with a conversion price of $3.05 per share—set at 1.05 times the firm’s market net asset value (mNAV). With this funding, ETHZilla will manage a nearly $500 million interest-bearing securities portfolio, aimed at generating excess income for long-term growth.

Expanding Ethereum Holdings and Yield Strategy

As part of its update, ETHZilla revealed that its Ethereum reserves have grown to 102,264 ETH, worth roughly $462 million at current market prices. The company has been leveraging ETH through Layer 2 protocols, while also generating returns from U.S. Treasuries and commercial paper. In addition, the firm repurchased about 500,000 shares at an average of $2.41, signaling confidence in its market outlook.

Also Read: Vitalik Buterin Fires Back: Why Ethereum Layer-2s Like Base Are NOT Exchanges

Chairman and CEO McAndrew Rudisill emphasized ETHZilla’s vision of deploying Ethereum capital into Layer 2 ecosystems and tokenizing real-world assets to create sustainable cash flow. To improve investor visibility, the company plans to roll out an ETH dashboard in the coming weeks, offering real-time insights into its treasury and yield strategies. Updated financial guidance is expected in its upcoming Q3 earnings report.

ETHZilla’s combined focus on capital growth, Ethereum adoption, and real-world tokenization underscores its strategy of positioning itself as a long-term leader in blockchain finance. With fresh capital, stronger reserves, and new transparency tools, the firm is signaling a decisive step toward scaling its Ethereum-based ecosystem.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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