ETHZilla Sells 24,291 ETH for $74.5M to Repay Convertible Notes
ETHZilla, the publicly listed crypto treasury firm that rebranded from 180 Life Sciences, disclosed in an SEC filing that it sold 24,291 ETH for $74.5 million (average ~$3,068.69 per ETH) to redeem senior secured convertible notes. After the disposal, the company holds roughly 69,800 ETH. The firm said it expects to use most or all proceeds to repay debt. ETHZilla has also pursued diversification through recent investments, acquiring stakes in Karus (20% fully diluted) and Zippy (15%). The sale reflects a wider trend among listed crypto treasuries trimming holdings amid price volatility to reduce leverage and shore up liquidity — similar moves have been made by other public firms such as FG Nexus and Sequans Communications. Traders should note the immediate incremental sell-side supply from the disclosed liquidation, the company’s intent to deleverage rather than exit crypto exposure, and the potential for improved market confidence if debt reduction stabilizes its balance sheet. Primary keywords: ETHZilla, Ether (ETH), ETH sale, convertible notes, crypto treasury, debt repayment.
Neutral
The direct price impact on ETH is likely neutral. The disclosed sale (24,291 ETH) creates short-term sell-side supply, which can exert downward pressure on price in the immediate term, especially if executed into thin liquidity windows. However, the volume sold (~24k ETH) is small relative to the total ETH market and circulating supply, so the macro price impact should be limited. Crucially, ETHZilla is signaling debt reduction rather than an exit from ETH — it still holds roughly 69,800 ETH — which reduces the likelihood of continued, repeated liquidation from this issuer. Market participants often view deleveraging by public treasuries as credit-positive for those firms and potentially stabilizing for token markets if it reduces forced selling later. Overall, expect modest short-term bearish pressure localized to liquidity conditions around the sale announcement, but no significant medium- to long-term bearish signal for ETH unless other large treasuries follow with sustained sell programs.