A major Ethereum treasury company is forced to sell $74 million worth of ETH
It was recorded that one of the top five Ethereum treasury companies sold a large portion of its ETH holdings. This sparked a new debate about whether institutional players have become negative towards Ethereum — or if they are simply managing balance sheet risks.
It was revealed that ETHZilla sold 24,291 ETH for approximately $74.5 million as part of the early redemption of its senior convertible bonds.
ETHZilla is selling Ethereum to pay off debts.
It was announced that the company would use all or a large part of the proceeds to pay off outstanding debts, with the recovery processes to be completed before New Year's Eve.
It was clarified that ETHZilla sold Ether to pay off loans, not because it expected the price of Ethereum to drop. Senior secured convertible bonds are ranked high in repayment priority and often require cash settlement.
Selling liquid assets like ETH is a common way to settle such obligations.
It was also announced that the company would discontinue its mNAV dashboard, which previously tracked its holdings of Ethereum and net asset value.
It was stated that ETHZilla should focus future evaluations on revenues and cash flows from real-world asset tokenization (RWA) operations, rather than just focusing on its crypto treasury.
