This crypto share surged 200% after Peter Thiel's surprise investment
What's the story
A little-known biotech firm, 180 Life Sciences Corp, has become the talk of the town after its surprise pivot into cryptocurrency. The company, now rebranded as ETHZilla, revealed it owns over 82,000 Ethereum (ETH) tokens worth nearly $349 million. The announcement came with news of a major investment from Peter Thiel's Founders Fund, which now holds a 7.5% stake in the company.
Market reaction
A look at the stock price
The news of Thiel's investment sent ETHZilla's stock price soaring by more than 200% in a single session. The company's shares are currently trading at around $10.24, reflecting a whopping 206.6% gain in just the past 24 hours. With a market capitalization of about $1.58 billion, ETHZilla has seen its value skyrocket over the past week due to this major pivot into cryptocurrency and Thiel's investment.
Strategic shift
DeFi Council and on-chain strategies
Unlike other biotech firms that have survived through licensing deals or buyouts, ETHZilla has fully embraced Ethereum. The company is not just holding onto its ETH but also using it through advanced on-chain strategies such as staking, lending, and liquidity provisioning. These strategies are aimed at generating returns beyond simple appreciation. To manage this treasury like a revenue-generating asset, ETHZilla has set up a dedicated DeFi Council of seasoned capital markets professionals and blockchain innovators.
Financial overview
Funding the ETH strategy
ETHZilla has raised over $581 million through private placements and convertible notes to fund its aggressive Ethereum treasury strategy. The firm holds 82,186 ETH acquired at an average price of $3,806.71 per token. It also has around $238 million in USD cash equivalents as reserves. The convertible notes carry a 4% annual interest after six months and are due in 2028.