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ETHZilla Stock Plunges on Share Dilution Fears

A company disclosure sent the stock plunging 30%.
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Aug 22, 2025 • 1 min read

ETHZilla, a newly rebranded Ether treasury firm, saw shares tumble nearly 30% Friday after a filing revealed that private placement shareholders can now sell up to 74.8M convertible shares.

What’s the Scoop?

  • Dilution Impact: Outstanding ETHZ shares rose by about 46%, from 164.4M to 239.3M. The company already received proceeds from the sale and this event is not related to a new offering.
  • Treasury Pivot: ETHZilla rebranded earlier this month from 180 Life Science, announcing it holds 82,186 ETH worth $349M. Peter Thiel’s Founders Fund owns a 7.5% stake in ETHZ.
  • Market Disconnect: Despite ETH price rising 9% on the day and U.S. equities trending higher after Fed Chair Powell’s Jackson Hole remarks, ETHZ shares moved sharply lower, highlighting investor unease around the implications of this filing.

Bankless Take:

Registering to sell shares does not constitute immediate share sales; it merely provides private placement holders with the ability to sell in the future. Amid a backdrop of pumping ETH prices, ETHZ could make for an interesting play at these discounted levels.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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