ETHZilla announced that it has conducted a major Ethereum sale as part of its balance sheet restructuring and has changed several metrics used to measure company value.
The company sold 24,291 ETH for approximately $74.5 million to fund the repayment of senior secured convertible notes.
ETHZilla said that all or a significant portion of the proceeds from the sale will be used for early redemption of the bonds. The company also added that the current mNAV (modified net asset value) dashboard data does not include cash assets on the balance sheet as the early redemption process is targeted to be completed between December 24 and December 30.
ETHZilla said that going forward, its value will be based on revenue and cash flow growth generated through the tokenization of real-world assets (RWA) rather than crypto reserves. As part of this strategic shift, the company announced today that it will deactivate the mNAV dashboard on its website. However, it states that regular financial updates will continue to be shared, and that material changes to ETH reserves and shareholdings will be made public through both SEC notices and social media channels.
On the other hand, this is not ETHZilla’s first sale. About two months ago, the company announced that it had sold about $40 million worth of ETH to fund a share buyback.
*This is not investment advice.
