{"id":414956,"date":"2025-12-23T15:54:54","date_gmt":"2025-12-23T10:24:54","guid":{"rendered":"https:\/\/dripp.zone\/news\/ethzilla-offloads-74-5-mln-ethereum-to-pay-debt-embarrassing-crypto-news\/"},"modified":"2025-12-23T16:12:42","modified_gmt":"2025-12-23T10:42:42","slug":"ethzilla-offloads-74-5-mln-ethereum-to-pay-debt-embarrassing-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/ethzilla-offloads-74-5-mln-ethereum-to-pay-debt-embarrassing-crypto-news\/","title":{"rendered":"ETHZilla offloads $74.5 mln Ethereum to pay debt: &#8216;Embarrassing!&#8217; &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"single-post-author\">\n<div class=\"single-post-author-top\">\n<p>Journalist<\/p>\n<\/p><\/div>\n<p>\t\t\t\t\t\t\t\t\t\t<span class=\"mvp-post-date updated\">Posted: <time class=\"post-date updated\" itemprop=\"datePublished\" datetime=\"2025-12-23\">December 23, 2025<\/time><br \/>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span><br \/>\n\t\t\t\t\t\t\t\t\t\t<meta itemprop=\"dateModified\" content=\"2025-12-23 1:10 pm\"\/><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div>\n<p><span style=\"font-weight: 400;\">Peter Thiel-backed ETHZilla appears to be shifting away from the Ethereum corporate treasury, just four months after entering the trend.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a <\/span><span style=\"font-weight: 400;\">statement<\/span>,<span style=\"font-weight: 400;\"> the firm said it has offloaded $74.5 million of its ETH (24,291 coins) to pay down debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> ETHZilla <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/ETHZilla_ETHZ\/status\/2003096385021759668\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">added<\/a> that it will discontinue mNAV (a multiple that tracks the value of its crypto holdings relative to its enterprise value) and focus on tokenization.\u00a0<\/span><\/p>\n<div id=\"attachment_555801\" style=\"width: 590px\" class=\"wp-caption aligncenter\"><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-23-085030.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-555801\" class=\"size-full wp-image-555801\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-23-085030.png\" alt=\"Ethereum\" width=\"580\" height=\"391\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-23-085030.png 580w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-23-085030-300x202.png 300w\" sizes=\"auto, (max-width: 580px) 100vw, 580px\"\/><\/a><\/p>\n<p id=\"caption-attachment-555801\" class=\"wp-caption-text\">Source: X<\/p>\n<\/div>\n<h2>Community reactions<\/h2>\n<p><span style=\"font-weight: 400;\">However, the swift shift from its ETH strategy elicited mixed reactions from market watchers. One analyst <\/span><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/SpecialSitsNews\/status\/2003208385379106877\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\"><span style=\"font-weight: 400;\">castigated<\/span><\/a><span style=\"font-weight: 400;\"> the firm for \u201cdestruction of shareholder value\u201d within months, calling the shift \u201cembarrassing\u201d.<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">\u201cNAV was 30\/share 2 months ago\u2026this is embarrassing. I haven\u2019t seen such a quick destruction of value and poor management decision-making in 25 years outside of SPACs.\u201d<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">ETHZilla\u2019s (Nasdaq: ETHZ) mNAV fell below 1 in early December after threatening a similar move in late October.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> The firm attempted to boost the mNAV via share buybacks in late October by <\/span><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/will-ethzillas-40m-sell-off-prove-bad-for-ethereums-rally\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span style=\"font-weight: 400;\">selling $40M<\/span><\/a><span style=\"font-weight: 400;\"> of its ETH holdings.\u00a0<\/span><\/p>\n<div id=\"attachment_555803\" style=\"width: 910px\" class=\"wp-caption aligncenter\"><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Ethereum-Treasury-Companies_-Fully-Diluted-mNAV.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-555803\" class=\"size-full wp-image-555803\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" alt=\"Ethereum ETHZilla\" width=\"900\" height=\"500\" data-lazy-srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Ethereum-Treasury-Companies_-Fully-Diluted-mNAV.png 900w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Ethereum-Treasury-Companies_-Fully-Diluted-mNAV-300x167.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Ethereum-Treasury-Companies_-Fully-Diluted-mNAV-768x427.png 768w\" data-lazy-sizes=\"(max-width: 900px) 100vw, 900px\" data-lazy-src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Ethereum-Treasury-Companies_-Fully-Diluted-mNAV.png\"\/><noscript><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-555803\" class=\"size-full wp-image-555803\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Ethereum-Treasury-Companies_-Fully-Diluted-mNAV.png\" alt=\"Ethereum ETHZilla\" width=\"900\" height=\"500\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Ethereum-Treasury-Companies_-Fully-Diluted-mNAV.png 900w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Ethereum-Treasury-Companies_-Fully-Diluted-mNAV-300x167.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Ethereum-Treasury-Companies_-Fully-Diluted-mNAV-768x427.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\"\/><\/noscript><\/a><\/p>\n<p id=\"caption-attachment-555803\" class=\"wp-caption-text\">Source: Blockworks<\/p>\n<\/div>\n<p><span style=\"font-weight: 400;\">With the debt obligations also piling in, further market contraction in 2026 could complicate its ETH strategy and operations. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">With mNAVs below 1, it becomes difficult to raise additional capital or sell shares to fund ETH buys.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, this is exactly why Strategy has scaled its <\/span><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/strategy-increases-usd-reserve-fund-to-2-19b-enough-to-clear-insolvency-fud\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span style=\"font-weight: 400;\">USD reserve fund<\/span><\/a><span style=\"font-weight: 400;\"> to cover immediate obligations, thereby avoiding the need to liquidate its BTC holdings in the event of a prolonged crypto winter and compressed mNAV.\u00a0<\/span><\/p>\n<h2>ETH struggles amid outflows<\/h2>\n<p><span style=\"font-weight: 400;\">ETHZilla rebranded from 80 Life Sciences Corp, a biotech firm focused on therapeutic drugs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The firm shifted its focus to the ETH strategy in August and sought to scale its holdings and generate yield via staking and diversified on-chain strategies. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">It became the ninth-largest ETH treasury firm, holding 93.8K ETH, worth $280 million at current prices.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, amid the Q4 crypto rout, the plans have completely changed to tokenization. Reacting to the U-turn, Mike Dudas, crypto investor at VC firm 6thMan Ventures, <\/span><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/mdudas\/status\/2003126721080606928\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow external noopener noreferrer\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\">,\u00a0<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">\u201cFirst DAT I\u2019ve seen explicitly shift from mNAV (discontinued) to operating business model. RWA tokenization is occurring on many chains, interesting to see if they keep \u201cETH\u201d as the core name or shift to something more reflective of how the segment is developing.\u201d<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">That said, in the past seven days, ETH treasury firms recorded 107.7K ETH outflows. The ETF complex also recorded 116K ETH outflows, translating to nearly $670 million in outflows. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">ETH struggled below $3k amid ongoing outflows.\u00a0<\/span><\/p>\n<div id=\"attachment_555806\" style=\"width: 532px\" class=\"wp-caption aligncenter\"><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-23-094849.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-555806\" class=\"size-full wp-image-555806\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" alt=\"Ethereum ETHZilla\" width=\"522\" height=\"245\" data-lazy-srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-23-094849.png 522w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-23-094849-300x141.png 300w\" data-lazy-sizes=\"(max-width: 522px) 100vw, 522px\" data-lazy-src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-23-094849.png\"\/><noscript><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-555806\" class=\"size-full wp-image-555806\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-23-094849.png\" alt=\"Ethereum ETHZilla\" width=\"522\" height=\"245\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-23-094849.png 522w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-23-094849-300x141.png 300w\" sizes=\"auto, (max-width: 522px) 100vw, 522px\"\/><\/noscript><\/a><\/p>\n<p id=\"caption-attachment-555806\" class=\"wp-caption-text\">Source: ETH strategic reserve<\/p>\n<\/div>\n<hr\/>\n<h2><strong>\u00a0Final Thoughts<\/strong><\/h2>\n<ul>\n<li><em>ETHZilla dumped more ETH to clear debt and signalled a shift from the ETH treasury to tokenized assets.<\/em><\/li>\n<li><em>ETH ETF and treasury firms saw nearly $670 million in outflows in the past seven days.<\/em><\/li>\n<\/ul>\n<div class=\"post-nav\">\n<div class=\"next-blog\">\n\t\t\t\t\t\t\t\t\t\t\tNext: <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/why-ethereums-2026-outlook-weakens-after-555m-eth-outflow\/\" rel=\"prev\" data-wpel-link=\"internal\">Why Ethereum\u2019s 2026 outlook weakens after $555M ETH outflow<\/a>\t\t\t\t\t\t\t\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Journalist Posted: December 23, 2025 Peter Thiel-backed ETHZilla appears to be shifting away from the Ethereum corporate treasury, just four months after entering the trend.\u00a0 In a statement, the firm said it has offloaded $74.5 million of its ETH (24,291 coins) to pay down debt. ETHZilla added that it will discontinue mNAV (a multiple that [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":414957,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-414956","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/414956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=414956"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/414956\/revisions"}],"predecessor-version":[{"id":414958,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/414956\/revisions\/414958"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/414957"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=414956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=414956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=414956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}