Biotech Firm 180 Life Sciences Shifts Focus to Crypto, Places ETH Bet After 99% Drop

Key Takeaways

  • 180 Life Sciences Corp will invest $425 million in Ether and rebrand as ETHZilla Corporation.
  • The company aims to create an Ether treasury overseen by Electric Capital after facing substantial losses.
  • Industry trends show many firms diversifying into crypto, despite concerns about volatility and strategic misalignment.

Corporate Transformation and Investment Plans

180 Life Sciences Corp, listed on Nasdaq, is pivoting from its biotechnology roots to focus on cryptocurrency, announcing plans to invest significantly in Ether. The company aims to raise $425 million through a private investment in public equity (PIPE) deal to build an Ether treasury reserve. This marks a strategic shift, reflecting ongoing operational challenges and significant financial losses.

Founded in 2016, 180 Life Sciences went public in 2020 but has since experienced a staggering decline of over 99.9%, with its stock now trading below $3.00 and a market cap of approximately $17 million. This downturn has predominantly resulted from persistent losses and a lack of revenue, alongside extensive shareholder dilution for capital raising. As of late 2024, the company reported an accumulated deficit exceeding $141.5 million and a working capital deficit of about $1.6 million.

Last year, 180 Life Sciences began diversifying its business approach, exploring an entry into the online gaming industry with a blockchain-based online casino. This move aligns with a wider industry trend where many companies, inspired by figures like Michael Saylor, have started investing in cryptocurrency as a treasury asset. Other firms, such as Mill City Ventures, Nature’s Miracle, and Upexi, are also exploring significant investments in various cryptocurrencies.

Charles Schwab noted that an increasing number of public companies are employing crypto treasury strategies to enhance share prices. However, this trend comes with scrutiny, as many organizations originally had different core objectives. Critics express concern regarding the potential risks of locking substantial cash reserves into volatile assets detached from primary business operations.

Despite these reservations, the trend of adopting crypto reserves continues to gain momentum, with forecasts suggesting that companies may eventually hold up to 10% of Ether’s total supply as their treasury strategies evolve. As 180 Life Sciences transitions to ETHZilla Corporation, industry observers will be keen to see how this strategic venture into cryptocurrency unfolds amidst the broader shift in corporate financial strategies.

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