180 Life Sciences pivots to crypto, raising $425M for an Ethereum strategy amid financial struggles.
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180 Life Sciences Transitions to Cryptocurrency with Ethereum Investment
In a bold strategic move, 180 Life Sciences Corp, a Nasdaq-listed biotechnology firm, is steering its focus towards the cryptocurrency sector by investing heavily in Ethereum (ETH). This pivot comes as the company faces significant financial challenges, including a steep decline in stock value and mounting losses.
Raising Capital for Ethereum Strategy
Related: Genius Group Incorporates Bitcoin into Their Treasury Strategy
The company announced plans to raise $425 million through a private placement to establish an Ethereum treasury reserve. This capital infusion is part of a broader rebranding initiative, with 180 Life Sciences set to rename itself as ETHZilla Corporation. The funds will be raised via a private investment in public equity (PIPE) deal, a popular structure among crypto-focused investors.
In addition to the equity raise, 180 Life Sciences has secured approval to issue up to $150 million in debt securities. Once the Ethereum treasury is operational, Electric Capital, a venture firm, will manage the assets, focusing on yield generation through various on-chain activities.
Background and Financial Struggles
Related: Bit Digital Raises $162.9M for Ethereum Strategy
Founded in 2016, 180 Life Sciences entered the public market in 2020. However, the company has struggled to maintain its financial footing, with its stock price plummeting over 99.9% since its initial public offering (IPO). As of the end of 2024, the firm reported an accumulated deficit exceeding $141.5 million and a working capital deficit of approximately $1.6 million.
The company’s financial woes have been exacerbated by a lack of revenue and repeated shareholder dilution to raise capital. This shift to cryptocurrency reflects a growing trend among struggling firms to diversify their portfolios with digital assets, inspired by high-profile strategies like Michael Saylor’s Bitcoin acquisition for MicroStrategy.
Industry-Wide Crypto Adoption
Related: Imminent Leadership Changes in SEC and CFTC Raise Questions Over Cryptocurrency Regulation
180 Life Sciences is not alone in its pivot to cryptocurrency. Recently, Nasdaq-listed Mill City Ventures announced plans to raise $441 million for a Sui strategy, while agri-tech firm Nature’s Miracle and consumer products company Upexi have made significant investments in XRP and Solana, respectively.
According to a report by Standard Chartered, companies could eventually hold up to 10% of Ether’s total supply as crypto treasury strategies gain traction. However, this trend has raised concerns among some analysts, as highlighted by Charles Schwab, regarding the volatility of such assets and their detachment from core business operations.
Despite these concerns, the shift towards digital assets continues to gain momentum, signaling a transformative period for companies like 180 Life Sciences as they explore new avenues for financial recovery and growth.
Michael has been a vital voice in crypto security, focusing on blockchain vulnerabilities and emerging technologies. With a background in cybersecurity and fintech, he ensures our readers stay informed on safeguarding their assets while exploring new opportunities in the crypto space.
