ETHZilla Corporation (ETHZ) Stock: Gains Momentum with $350M Convertible Debenture Deal

TLDR

• ETHZilla lands $350M convertible deal, fueling balance sheet resilience.
• ETHZilla boosts capital with $350M funding, eyes Ethereum growth.
• $350M convertible raise strengthens ETHZilla’s DeFi expansion plans.
• ETHZilla trims debt costs, secures $350M for Ethereum tokenization push.
• ETHZilla gains $350M backing, signaling confidence in DeFi strategy.

ETHZilla Corporation (Nasdaq: ETHZ) shares showed early strength in trading before pulling back. The stock peaked near $2.93, then declined steadily. It now trades at $2.5650 with a modest gain of 1.38%.

ETHZilla Corporation (Nasdaq: ETHZ) 

The company announced a new $350 million convertible debenture agreement. This funding deal came from an existing institutional investment partner. The update also revised terms of the previously issued $156.5 million convertible debentures.

New Convertible Debenture Strengthens Capital Position

ETHZilla secured $350 million in new funding through convertible debentures. The company partnered with its current institutional investor to complete the transaction, which reflects a significant commitment of capital and confidence.

The new debentures carry an annual interest rate of 2%. ETHZilla will benefit from excess interest income on a combined portfolio of $500 million. This includes both new and existing interest-bearing securities.

The conversion price for the new debentures is $3.05 per share, which is set above the Nasdaq Minimum Price and reflects 1.05x the firm’s Market Net Asset Value (mNAV).

Amended Terms Improve Interest Structure

ETHZilla also amended the terms of its previously issued $156.5 million convertible debentures. These instruments will now remain at 0% interest until February 6, 2026. After that, they will carry a 2% annual rate instead of the original 4%.

This change improves cash flow flexibility and lowers capital costs. The new structure benefits shareholders by reducing long-term interest obligations. ETHZilla retains the ability to redirect capital into strategic Ethereum-based assets.

Combined with the new issuance, the total value of interest-bearing assets is around $500 million. This portfolio could support the company’s broader DeFi growth plan, which ETHZilla expects will improve balance sheet resilience.

Business Model Focuses on Ethereum and Tokenization

ETHZilla plans to deploy capital into Layer 2 protocols and tokenized real-world assets. The company aims to generate consistent free cash flow from Ethereum-based operations. It views its strategy as scalable and built on substantial fixed operating leverage.

The firm emphasizes transparency in its mNAV calculations. It intends to offer financial guidance in its next earnings report, which will provide additional clarity on expected performance for the remainder of 2025.

ETHZilla positions itself as a capital-efficient DeFi technology firm. The company focuses on converting Ethereum reserves into yield-generating instruments. Management believes this approach can sustain long-term cash flow and shareholder value.

The post ETHZilla Corporation (ETHZ) Stock: Gains Momentum with $350M Convertible Debenture Deal appeared first on CoinCentral.