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PALM BEACH - ETHZilla Corporation (NASDAQ:ETHZ), whose shares have surged 123.89% over the past six months according to InvestingPro data, announced Monday it has raised $350 million through new convertible debentures with an institutional investment partner. The company’s stock, currently trading at $2.53, appears overvalued based on InvestingPro’s Fair Value analysis.
The new debentures will carry a 2% annual interest rate with a conversion price of $3.05 per share, which the company states is 1.05 times its Market Net Asset Value (mNAV). The agreement also amends terms of previously issued $156.5 million convertible debentures, reducing their interest rate from 4% to 0% until February 2026, after which they will bear 2% annual interest. InvestingPro data shows the company operates with a moderate debt level, maintaining a debt-to-equity ratio of 0.26.
"ETHZilla is committed to being a responsible steward of our shareholders’ capital," said McAndrew Rudisill, Chairman and CEO of ETHZilla in the press release.
The company, which focuses on deploying Ethereum (ETH) into cash-flowing assets, reported holding 102,264 ETH and ETH equivalents valued at approximately $462 million as of September 19. ETHZilla also maintains approximately $559 million in cash and cash equivalents. With a current ratio of 0.58, InvestingPro analysis indicates the company’s short-term obligations exceed its liquid assets. InvestingPro subscribers have access to 10+ additional financial health indicators for ETHZ.
The firm disclosed it repurchased about 0.5 million shares at an average price of $2.41 during the week ending September 20, reducing outstanding shares by 0.3%. This brings total repurchases in September to approximately 6.45 million shares.
ETHZilla generates revenue through various decentralized finance protocols and is exploring tokenization of real-world assets. The company deploys ETH across multiple Layer 2 protocols to generate yield.
Clear Street served as exclusive financial advisor for the transaction. The company indicated it plans to provide guidance for the remainder of 2025 in its upcoming Q3 earnings release.
The information in this article is based on a company press release statement.
In other recent news, ETHZilla Corporation announced a significant share repurchase, acquiring approximately 6 million shares at an average price of $2.50 each. The company also reported holding 102,255 Ether (ETH) valued at approximately $460 million, alongside $228 million in cash equivalents. ETHZilla has authorized a stock buyback program worth up to $250 million. Leadership changes are underway, with McAndrew Rudisill being appointed as the new CEO, replacing Blair Jordan. Rudisill will continue to serve as Executive Chairman. Meanwhile, 180 Life Sciences Corp revealed plans to sell up to $500 million in common stock shares. This sale is part of an "at-the-market" offering program with Clear Street LLC as the sales agent. These developments highlight strategic moves by both companies in their respective sectors.
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