180 Life Sciences Corp. (NASDAQ: ATNF) has now rebranded itself as ETHZilla and shifted its focus from a biotechnology to a cryptocurrency-focused company.
The consequence of this change included a 76.95 per cent surge in early trading on Tuesday. The rally stemmed from a dramatic strategic pivot, major fundraising moves, and promising biotechnology results. Investors reacted swiftly, seeing the transformation as both bold and potentially lucrative.
The company committed to building a substantial Ethereum (ETH) treasury.
It announced a USD$425 million private placement aimed at buying and holding Ether.
Accordingly, this would position ETHZilla among the largest ETH treasury holders in the world. Social media posts from crypto analysts underscored the magnitude of this plan. Some noted it could make ETHZilla the fifth-largest ETH holder, surpassing BTCS Inc (NASDAQ: BTCS).
In addition, the rebrand to ETHZilla signalled ambition far beyond a simple treasury build. The company outlined plans to use Ethereum’s blockchain ecosystem for on-chain treasury management. Furthermore, management framed this as a benchmark approach for public companies exploring digital asset reserves. This framing tapped into growing enthusiasm for blockchain-driven corporate strategies.
Fueling the rally further, ETHZilla recently closed a USD$156 million private offering of senior secured convertible notes. The deal closed on August 8, 2025, and the proceeds are earmarked for ETH acquisitions. The notes convert at USD$3.445 per share, with a potential downward reset after nine months. Therefore, the structure offers flexibility for investors while strengthening ETHZilla’s balance sheet. Executive Chairman McAndrew Rudisill described the financing as a key step in building liquidity for aggressive ETH accumulation.
Read More: BitBridge Capital launches disruptive Bitcoin lending strategy
Read more: BitMine becomes world’s largest ETH treasury, surpasses $2.9B
Stock surge from more than just crypto
Additionally, the move reassured markets about the company’s ability to secure significant capital. Morningstar and Nasdaq both reported strong investor response to the offering. Consequently, market sentiment shifted sharply in ETHZilla’s favour. The combination of equity-like upside and dedicated ETH funding appealed to both crypto enthusiasts and speculative traders.
The surge was also not only about cryptocurrency.
ETHZilla also shared promising results from its legacy biotechnology operations. The company completed a clinical pharmacology study on a new solid CBD formulation with improved oral uptake. In addition, the results suggested therapeutic promise in chronic pain and inflammation treatment. This reinforced that the company has not abandoned its biotech roots despite its crypto pivot.
Furthermore, the company holds intellectual property in biotechnology that it aims to monetize. Maintaining this diversification could help offset some risks tied to cryptocurrency market volatility. In addition, it offers potential licensing or partnership revenues. The positive FDA-related update attracted biotech investors who might otherwise have ignored a cryptocurrency heavy narrative.
However, financially, ETHZilla remains in recovery mode.
The company recently posted a USD$1.73 million net income loss and a negative return on assets of 78.67 per cent. However, it maintains USD$10.71 million in total assets and USD$5.38 million in equity. The debt-to-equity ratio of 0.14 suggests manageable leverage. Furthermore, the price-to-book ratio of 3.37 signals strong market expectations for future growth.
Conversely, negative cash flow ratios point to ongoing operational challenges. The heavy commitment to ETH also brings exposure to sharp market swings. Regulatory uncertainty in the digital asset sector adds another layer of risk. Additionally, convertible note terms could dilute shareholders if conversion occurs during lower price periods.
Read more: SEC launches “Project Crypto” to bring U.S. financial markets on-chain
Read more: Ripple scores another SEC victory, gains access to traditional fundraising
ETHZilla has crypto specific challenges ahead
To address these risks, ETHZilla partnered with Electric Capital to create a differentiated yield generation program. In addition, it formed a DeFi Council to guide treasury strategy. Management framed these moves as part of a calculated risk-management plan. Furthermore, they aim to generate yield on ETH holdings, not merely sit on the asset.
Accordingly, ETHZilla’s stock surge reflects more than speculative hype. It shows investor appetite for companies blending traditional sectors with blockchain innovation. The company’s aggressive capital raises, strategic rebrand, and dual-track biotech and crypto operations offer a unique narrative.
However, the path forward will test both execution and market conditions. ETHZilla must prove it can manage ETH volatility, regulatory pressure, and operational costs. In addition, its ability to monetize biotech IP could provide a critical buffer during crypto downturns.
