Thiel-backed ETHZilla abandons DAT, embraces real-world assets amid debt repayment
Peter Thiel–backed ETHZilla has sold $74.5 million worth of ETH as part of its shift toward an RWA strategy and announced it will discontinue displaying the mNAV dashboard on its website, which many investors following its DAT strategy had become accustomed to.
Less than six months after switching to its ETH-based Digital Asset Tokenization (DAT) strategy, ETHZilla said it is now pivoting toward a Real-World Asset (RWA) tokenization strategy, selling $74.5 million worth of ETH to repay debt.
“As part of the repayment of our outstanding secured convertible notes, ETHZilla sold 24,291 ETH… We plan to use all or a significant portion of the proceeds to finance the repayment,” the company said Monday.
ETHZilla, formerly known as biotech firm 180 Life Sciences, said it now holds 69,802 ETH worth about $207 million. This is not the company’s first Ethereum sale — in October ETHZilla sold $40 million worth of ETH as part of its $250 million share repurchase plan. However, this time shareholders are witnessing not a one-off move, but another strategic pivot.
Gradual transition to tokenization strategy
This month the company said it plans to adopt an RWA strategy, which includes tokenizing assets such as auto loans, manufactured home mortgages, aerospace equipment and real estate.
“In the future, the company believes its value will be driven by revenue growth and cash flow from our risk-weighted real-world asset tokenization business (RWA),” ETHZilla stated.
All this followed the company’s $425 million private placement agreement in July with more than 60 investors, when 180 Life Sciences adopted the DAT strategy.
In addition, ETHZilla announced it will reduce the level of transparency investors may have become used to under its DAT approach.
“Starting today, we are discontinuing the display of the mNAV dashboard on our website, but we intend to continue providing periodic balance updates,” the company said.
The mNAV multiplier shows how the company’s market capitalization relates to its net assets — in this case, its cryptocurrency holdings.
ETHZ stock daily chart. Source: TradingView
Following news of the ETH sale and strategic shift, ETHZ shares fell more than 7% to $6.38, while in August they surged over 90% after it became known that tech billionaire Peter Thiel invested in the DAT strategy.
As we wrote, Ethereum: buyback programs led to a 2.97% price rise
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