{"id":888269,"date":"2025-09-22T10:35:47","date_gmt":"2025-09-22T14:35:47","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/ethzilla-announces-350-million-add-on-convertible-debenture-investment-and-provides-business-update\/"},"modified":"2025-09-22T10:35:47","modified_gmt":"2025-09-22T14:35:47","slug":"ethzilla-announces-350-million-add-on-convertible-debenture-investment-and-provides-business-update","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/ethzilla-announces-350-million-add-on-convertible-debenture-investment-and-provides-business-update\/","title":{"rendered":"ETHZilla Announces $350 Million Add-On Convertible Debenture Investment and Provides Business Update"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n PALM BEACH, Fla.<\/span>
\n <\/span>, Sept. 22, 2025<\/span><\/span> \/PRNewswire\/ — ETHZilla Corporation (Nasdaq: ETHZ) (“ETHZilla” or the “Company”), today announced a $350 million<\/span> convertible debenture by an institutional investment partner.\u00a0<\/p>\n

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\n
\n \"ETHZilla
\n <\/a>\n <\/p>\n<\/p><\/div>\n

\n Convertible Debenture Investment Details<\/b>\n <\/p>\n

ETHZilla partnered with the existing convertible debenture investor to amend the terms of the existing convertible debenture and to raise an additional $350 million<\/span> through the issuance of new convertible debentures (the “New Debentures”).<\/p>\n

The previously issued $156.5 million<\/span> convertible debentures will remain at 0% interest until February 6, 2026<\/span> and will have a 2% annual interest rate thereafter (compared to the original 4% annual interest rate). The New Debentures will bear a 2% annual interest rate and ETHZilla will receive the excess interest income on the total approximately $500 million<\/span> portfolio of interest-bearing securities. The conversion price of the New Debentures is $3.05<\/span> per share which is 1.05x Market Net Asset Value (mNAV)* and is above the Nasdaq Minimum Price on the date the New Debentures were issued.\u00a0\u00a0<\/p>\n

“ETHZilla, is committed to being a responsible steward of our shareholders’ capital,” said McAndrew Rudisill<\/span>, Chairman and Chief Executive Officer of ETHZilla. “We are a DeFi<\/span> technology company focused on building our capital reserves to deploy ETH<\/span> into cash flowing assets. As we pursue our strategy of deploying ETH<\/span> into Layer 2 protocols and tokenizing real-world assets to generate free cash flow on the Ethereum<\/span> network, we are providing transparency into ETHZilla’s mNAV and the methodology behind the calculation*. We believe our business model is highly scalable, with significant fixed operating leverage and recurring positive cash flow. We plan to provide guidance for the remainder of 2025 in our Q3 earnings release. We believe that ETHZilla is well positioned for continued growth with the support of our institutional shareholders.”<\/p>\n

Clear Street served as exclusive financial advisor to the Company.<\/p>\n

*See “Supplemental Measures” below.<\/i><\/p>\n

\n Business Update*<\/b>\n <\/p>\n

The Company today introduced additional detail and metrics relating to other sources of cash flow and ETH<\/span> NAV and mNAV calculation. In addition to holding Ether (“ETH<\/span>“), the Company generates cash flows from ETH<\/span> deployed to Layer 2 protocols, its cash balance invested in U.S. Treasuries, commercial paper, and is exploring the tokenization<\/span> of real-world assets.<\/p>\n

ETHZilla’s mNAV and ETH<\/span> NAV are calculated as follows1<\/sup>:<\/p>\n

\n\n\n\n\n\n\n\n\n
\n

\n Market Cap<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 405<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Convertible Debt + OTC SWAP<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n (556)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Cash & Cash Equivalents<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 559<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n Enterprise Value (EV)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 403<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n
\n ETH<\/span> NAV <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 462<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n mNAV<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 0.87x<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n\n\n\n
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\n 1.<\/span>\n <\/p>\n<\/td>\n

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\n As of September 19th<\/sup>, 2025. All numbers are in millions of USD, aside from mNAV<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

\n Update on Stock Repurchase Program<\/b>\n <\/p>\n

The Company repurchased approximately 0.5 million shares at an average price of $2.41<\/span>, reducing shares outstanding by 0.3% during the week ending September 20, 2025<\/span>. This brings the total repurchased shares in the month of September to approximately 6.45 million shares.<\/p>\n

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\n ETH<\/span> Deployment and Accumulation Update<\/b>\n <\/p>\n

A summary of ETHZilla’s current ETH<\/span> position and key metrics as of September 19, 2025<\/span>:<\/p>\n