ETHZilla Corporation has announced its latest capital plan, which includes securing a $350 million add-on convertible debenture investment from its existing institutional partner. The firm also provided a comprehensive business update, outlining its growing Ethereum (ETH) reserve, stock repurchase activity, and plans to tokenize real-world assets.
In their official press release, the firm said that the $350 million is raised via debenture insurance built on ETHZilla’s prior $156.5 million convertible debt arrangement. The update will have revised interest rates of 2% per year, starting from February 2026.
New debentures will be issued at 2% annual interest with a conversion price of $3.05 per share, representing 1.05 times the firm’s market net asset value (mNAV). Furthermore, the company will now oversee a nearly $500 million interest-bearing securities portfolio, capturing excess interest income.
“ETHZilla is committed to being a responsible steward of shareholder capital,” said Chairman and CEO McAndrew Rudisill. “Our strategy is to deploy ETH into Layer 2 protocols and tokenize real-world assets to create sustainable free cash flow on the Ethereum network.”
ETHZilla’s yield strategy
Besides buying ETH, the company also mentioned that it generated extra cash from using ETH in Layer 2 protocols and from its cash invested in the U.S. Treasuries and commercial paper, and it is looking into turning real-world assets into tokens. Furthermore, the firm repurchased approximately 500,000 shares at an average price of $2.41. At present, ETHZilla’s total holdings Ethereum is equivalent to 102,264, worth approximately $462 million.
The firm also aims to roll out an ETH dashboard in the coming weeks, offering real-time visibility into its treasury and on-chain yield strategies. The company will also provide updated financial guidance for the remainder of 2025 in its Q3 earnings report.
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