Nasdaq Biotech Firm 180 Life Sciences Turns to Ether as Biotech Results Turn Sour
Nasdaq-listed firm 180 Life Sciences Corp., rebranding to ETHZilla Corporation, plans a $425 million investment in Ether amid significant financial losses and stock underperformance. The planned shift represents a strategic repositioning away from its biotechnology roots.
On Tuesday, the company announced a planned PIPE deal to raise capital for establishing an Ether treasury. 180 Life Sciences also holds authorization to issue $150 million in debt securities.
Following the establishment of the treasury, venture firm Electric Capital will serve as the company’s external manager.
Company Struggles and Pivot
Founded in 2016 as a clinical-stage biotech, 180 Life Sciences went public in 2020. Since its IPO launch, stock performance has been catastrophic, dropping over 99.9%. The stock currently trades below $3.00, yielding a market capitalization near $17 million.
Recurring losses and persistent shareholder dilution via equity raises contributed to the precipitous decline. Public filings indicate an accumulated deficit exceeding $141.5 million and a working capital deficit of roughly $1.6 million as of late 2024.
A Broader Trend: Crypto Treasuries
Rebranding as ETHZilla signals a move by penny-stock firms to explore digital assets as an investment frontier. This strategy mirrors the increasing adoption of crypto treasury reserves by various corporations.
The transformation isn’t unique; hundreds of U.S. publicly traded firms have deployed crypto treasury strategies. Highlights include Mill City Ventures seeking $441 million for a Sui (SUI) treasury, Nature’s Miracle accepting up to $20 million in XRP (XRP), and Upexi investing $16.7 million in Solana (SOL).
According to Charles Schwab, more public companies are exploring crypto treasury models, which corporate finance analysts like Schwab typically view as esoteric asset allocations given the historical volatility and lack of core business ties.
Despite criticisms, the trend of diversifying treasury reserves shows no sign of slowing. Standard Chartered forecasts that crypto treasury strategies could eventually lead firms to hold up to 10% of all Ether (ETH) currently in circulation.
