Sell 24,000 Ether to pay off debts! ETHZilla will abandon the "Coin Hoarding" strategy and shift to RWA tokenization.

ETHZilla, backed by Silicon Valley venture capital mogul Peter Thiel (stock code: ETHZ), has transformed into an Ether reserve company for less than six months but suddenly hit the brakes. ETHZilla confirmed on Monday that it has sold 74.5 million dollars worth of Ether to pay off company debts; at the same time, it announced that the company's strategic focus will shift from simple “Coin Hoarding” to more cash flow potential business of “Real World Asset (RWA) tokenization.”

This company, which was formerly the NASDAQ-listed biotech company 180 Life Sciences, has undoubtedly thrown a cold water on the swarm of imitators of Strategy's “public company Coin Hoarding craze.”

ETHZilla announced on Monday that it has sold 24,291 Ether to redeem the company's outstanding preferred secured convertible bonds, and intends to use all or most of the proceeds for this redemption.

Even after this sell-off, ETHZilla still holds 69,802 Ether, which is approximately worth $207 million at the current market price. It is worth noting that this is not the first time the company has reduced its holdings; back in October this year, the company sold $40 million worth of Ether due to a $250 million stock buyback plan.

Strategic Turnaround: Shifting from Coin Hoarding to RWA Tokenization

In July this year, the company just raised $425 million through a private equity investment (PIPE) model from over 60 investors and announced with great fanfare the adoption of a digital asset reserve strategy, attempting to replicate the successful model of Strategy.

However, the honeymoon period seems to be shorter than expected. ETHZilla clearly stated: “Looking ahead, the company believes that the driving force of value will come from the revenue and cash flow growth of our RWA tokenization business.”

According to the blueprint released earlier this month, ETHZilla's RWA strategy will focus on the tokenization of assets such as auto loans, recreational vehicle loans, aerospace equipment, and real estate.

It is worth noting that ETHZilla is synchronously adjusting its information disclosure method, starting today it will stop updating the mNAV dashboard on the official website, and will only retain regular disclosures of the balance sheet.

The so-called mNAV (Multiple of Net Asset Value) is a key indicator that measures a company's market value relative to its net assets (amount of cryptocurrency holdings) and is regarded as an important observation tool for valuing cryptocurrency reserve companies.

Looking back to August this year, when the news of Peter Thiel investing in ETHZilla broke, the company's stock price once skyrocketed by over 90%. However, with the recent weakness in the price of Ether, which is currently trading at around $3,000, having fallen nearly 30% over the past 3 months, ETHZilla's stock price has also corrected accordingly.

As of Monday's close, the ETHZilla stock price fell nearly 4%, closing at $6.64.

ETHZilla stated that in the future, in the process of promoting the company's business plans, it does not rule out the possibility of continuously supplementing the necessary funds for the company through the sale of Ether or equity fundraising.

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Disclaimer: This article is intended to provide market information; all content and opinions are for reference only and do not constitute investment advice, nor do they represent the views and positions of the blockchain community. Investors should make their own decisions and trades, and the author and the blockchain community will not be liable for any direct or indirect losses incurred by investors' trading. _

Tags: ETHETHZETHZillaPeter ThielRWA public company tokenization Ether reserve cryptocurrency Coin Hoarding physical assets