ETHZilla May Shift from Ethereum Treasury to Tokenization After Selling $74M in ETH

• ETHZilla’s ETH sale: Sold 24,291 ETH valued at $74.5 million to pay down debt obligations.

• Strategic pivot: Discontinuing mNAV tracking and focusing on real-world asset tokenization instead of Ethereum holdings.

• Market impact: Ethereum treasury firms and ETFs saw 107.7K ETH outflows, totaling nearly $670 million in the past seven days, with ETH price struggling below $3,000.

ETHZilla’s Ethereum treasury shift: Sold $74.5M ETH to cut debt, eyes tokenization. Explore impacts on crypto markets and investor reactions now.

What is ETHZilla’s Shift from Ethereum Corporate Treasury Strategy?

ETHZilla’s shift from Ethereum corporate treasury strategy involves selling a significant portion of its ETH holdings to address debt and redirect focus toward tokenization. Just four months after entering the Ethereum treasury trend, the Peter Thiel-backed firm offloaded 24,291 ETH worth $74.5 million, as stated in its official announcement. This move discontinues the mNAV metric, which tracks crypto holdings relative to enterprise value, signaling a broader operational change amid Ethereum’s market pressures.

Peter Thiel-backed ETHZilla appears to be shifting away from the Ethereum corporate treasury, just four months after entering the trend. 

In a statement, the firm said it has offloaded $74.5 million of its ETH (24,291 coins) to pay down debt.

ETHZilla added that it will discontinue mNAV (a multiple that tracks the value of its crypto holdings relative to its enterprise value) and focus on tokenization. 

Source: X

Community reactions

However, the swift shift from its ETH strategy elicited mixed reactions from market watchers. One analyst castigated the firm for “destruction of shareholder value” within months, calling the shift “embarrassing”.

“NAV was 30/share 2 months ago…this is embarrassing. I haven’t seen such a quick destruction of value and poor management decision-making in 25 years outside of SPACs.”

How Has ETHZilla’s mNAV Metric Performed Amid Ethereum Market Volatility?

ETHZilla’s mNAV, a key indicator for Ethereum treasury firms, fell below 1 in early December 2025, following a similar threat in late October. This decline made it challenging to raise capital or fund further ETH acquisitions through share sales. In response, the firm conducted share buybacks in late October by selling $40 million of its ETH holdings, but ongoing debt pressures and market contraction have pushed it toward alternative strategies. According to data from Blockworks, ETHZilla’s position among Ethereum treasury companies highlights the risks of heavy crypto exposure during downturns, with mNAVs under 1 complicating operations. Expert analysis from financial observers notes that such metrics are crucial for investor confidence, and ETHZilla’s decision to discontinue mNAV reflects a pragmatic response to Ethereum’s Q4 rout.

ETHZilla’s (Nasdaq: ETHZ) mNAV fell below 1 in early December after threatening a similar move in late October.

The firm attempted to boost the mNAV via share buybacks in late October by selling $40M of its ETH holdings. 

Source: Blockworks

With the debt obligations also piling in, further market contraction in 2026 could complicate its ETH strategy and operations.

With mNAVs below 1, it becomes difficult to raise additional capital or sell shares to fund ETH buys. 

In fact, this is exactly why Strategy has scaled its USD reserve fund to cover immediate obligations, thereby avoiding the need to liquidate its BTC holdings in the event of a prolonged crypto winter and compressed mNAV. 

ETH struggles amid outflows

ETHZilla rebranded from 80 Life Sciences Corp, a biotech firm focused on therapeutic drugs.

The firm shifted its focus to the ETH strategy in August and sought to scale its holdings and generate yield via staking and diversified on-chain strategies.

It became the ninth-largest ETH treasury firm, holding 93.8K ETH, worth $280 million at current prices.  

However, amid the Q4 crypto rout, the plans have completely changed to tokenization. Reacting to the U-turn, Mike Dudas, crypto investor at VC firm 6thMan Ventures, said, 

“First DAT I’ve seen explicitly shift from mNAV (discontinued) to operating business model. RWA tokenization is occurring on many chains, interesting to see if they keep “ETH” as the core name or shift to something more reflective of how the segment is developing.”

Frequently Asked Questions

Why Did ETHZilla Sell Its Ethereum Holdings So Quickly?

ETHZilla sold 24,291 ETH for $74.5 million primarily to pay down accumulating debt pressures amid Ethereum’s market downturn. This decision, announced in its statement, allows the firm to stabilize finances and pivot away from volatile treasury strategies toward more sustainable tokenization initiatives, as confirmed by company disclosures.

What Are the Broader Impacts of Ethereum Outflows on Treasury Firms?

In the past seven days, Ethereum treasury firms experienced 107.7K ETH outflows, while ETFs saw 116K ETH worth about $670 million exit. This has pressured ETH prices below $3,000, making it harder for firms like ETHZilla to maintain holdings without significant liquidity risks, according to strategic reserve data.

That said, in the past seven days, ETH treasury firms recorded 107.7K ETH outflows. The ETF complex also recorded 116K ETH outflows, translating to nearly $670 million in outflows.

ETH struggled below $3k amid ongoing outflows. 

Source: ETH strategic reserve

Key Takeaways

• ETHZilla’s Debt Management: The sale of $74.5 million in ETH directly addresses immediate financial obligations, reducing leverage in a volatile market.
• Pivot to Tokenization: Discontinuing mNAV and focusing on real-world asset tokenization aligns with emerging trends across multiple blockchains.
• Market-Wide Pressures: With $670 million in Ethereum outflows, investors should monitor how treasury firms adapt to prolonged downturns.

Conclusion

ETHZilla’s Ethereum corporate treasury shift underscores the challenges facing crypto-focused firms amid 2025’s market volatility, with the $74.5 million ETH sale and mNAV discontinuation paving the way for tokenization strategies. As Ethereum outflows continue to pressure prices below $3,000, this move highlights the need for diversified approaches in digital asset management. Investors are advised to watch for further developments in real-world asset tokenization, which could redefine corporate crypto engagement moving forward.

 Final Thoughts

• ETHZilla dumped more ETH to clear debt and signalled a shift from the ETH treasury to tokenized assets.
• ETH ETF and treasury firms saw nearly $670 million in outflows in the past seven days.