ETHZilla, Ethereum treasury company, announces strategy to revalue its share price

The company will apply a strategy of “reverse split”with which it will seek to reduce the number of circulating shares and thus increase its price in the market. The goal is for them to be priced above USD $10 per unit, and thereby expand their investor base.

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• ETHZilla will implement a 1 for 10 reverse split on October 20.
• The measure aims to exceed the threshold of USD $10 and attract institutional funds.
• More than 60 investors, including Polychain and GSR, participate in its financing.

ETHZilla (ETHZ), asset-based treasury firm Ethereum, announced a strategy to raise the price of its shares in the market, for which it proposes a “reverse split” strategy that will reduce the amount of shares available in the market.

According to information shared by ETHZilla, spread by various media, this change will come into force on October 20and the goal of the strategy is to raise the price of its shares above US$10 to meet the investment criteria of institutional funds that maintain minimum limits per share.

The reverse split strategy consists of combine several existing shares into one, reducing the total number of shares and increasing the price per share, without altering the total value of the shareholders’ investment. Its main purpose is to increase the price of the stock to meet listing requirements on stock exchanges or to make the stock more attractive to investors. In the case of ETHZilla, They contemplate doing it in a proportion of 1 by 10, and thereby achieving the originally set goal.

Objective: attract institutional capital

According to a press release issued Wednesday, ETHZilla explained that the measure seeks strengthen your relationship with institutional investorsoffering better collateral and margin conditions associated with shares of higher nominal value.

“As part of ETHZilla’s effort to significantly expand its commitment to the institutional investor community, the reverse split is intended to provide them with access to margin and collateral tied to share prices above $10.00”, indicated the company.

ETHZilla clarified that the decision not related to market listing requirementsbut rather responds to a financial strategy to attract sophisticated capital.

Background and rebranding

The split was approved by shareholders during a special meeting held on July 24. The company, formerly known as 180 Life Sciences Corp.completed his rebranding a ETHZilla in August, after receiving support from Founders Fundthe venture capital fund led by Peter Thiel.

The firm has previously executed operations aimed at boosting the value of its shares, such as a share buyback program for USD $250 million.

Besides, ETHZilla owns more than 100,000 ETH and has deployed part of its assets in applications DeFi, including protocols liquid restaking as EtherFi and Puffer, thus reinforcing its presence within the ecosystem of Ethereum.

Investors and financing

More than 60 institutional and crypto native investors participated in a recent transaction PIPE (Private Investment in Public Equity) by ETHZilla.

These include Borderless Capital, G.S.R. and Polychain Capital, along with recognized figures in the sector such as Sreeram Kannan (Eigenlayer), Tarun Chitra (Gauntlet) and Robert Leshner (Superstate).

The presence of these actors suggests a growing intersection between traditional finance and Web3 projectsdriven by institutional interest in assets backed by Ethereum and its derivatives.

Market outlook

Currently, the actions of ETHZilla fall more than 7% on the daytrading around USD $1.77. However, the company is confident that the reverse split will raise the price at levels that allow attracting funds with more restrictive investment policies.

If successful, ETHZilla could be positioned as one of the first hybrid corporate treasuriescombining on-chain assets with stock market exposure, a model that could be replicated in other listed crypto-financial companies.

Article written with the help of an AI content writer, edited by Angel Di Matteo / DailyBitcoin

Original image from DiarioBitcoin, created with artificial intelligence, free to use, licensed under Public Domain.

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