"DAT scrapped after just 5 months"…ETHZilla selling off Ethereum

US Nasdaq-listed company ETHZilla is accelerating the sale of its Ethereum (ETH) holdings. Industry analysts say ETHZilla may have effectively abandoned the digital-asset treasury strategy (DAT) it introduced last July.

According to Bloomberg on the 24th (local time), ETHZilla recently sold $74.5 million (about 100 billion won) worth of Ethereum to repay debt, the company disclosed to the U.S. Securities and Exchange Commission (SEC). ETHZilla also sold $40 million (about 60 billion won) worth of Ethereum in October. At that time, the Ethereum sales were for share buybacks.

The Ethereum sold this time amounted to about 24,300 coins. With this sale, ETHZilla's Ethereum holdings fell to about 69,800 coins.

ETHZilla's large-scale Ethereum sales are due to worsening DAT performance. Ethereum's price has been on a downward trend since last October. As of the 22nd, ETHZilla's mNAV (company value relative to Ethereum holdings) was 0.7. That means ETHZilla's corporate value is below the value of the Ethereum it holds.

Some view that ETHZilla is pivoting its business. On the 22nd, ETHZilla said via X (X), "Going forward, the company's value will be determined by the growth in revenue and cash flows generated by the tokenization of real-world assets (RWA)," and "we will also discontinue providing the mNAV dashboard posted on the website." This effectively signals the possible abandonment of DAT.

Earlier, ETHZilla announced in July that it would stockpile Ethereum, and changed its name from '180 Life Sciences' to ETHZilla. In August, ETHZilla attracted attention by receiving investment from Founders Fund, led by Peter Thiel, PayPal co-founder and Palantir board chairman.