Ethereum News: 180 Life Sciences’ Bold $425M ETH Gamble After 99.9% Stock Crash
In a shocking twist, Nasdaq-listed 180 Life Sciences Corp has announced a dramatic pivot from biotech to cryptocurrency, investing $425 million in Ethereum (ETH) after its stock value plummeted 99.9% since its 2020 IPO. This bold move raises critical questions about corporate crypto strategies and the risks of abandoning core industries for digital assets.
Why is 180 Life Sciences betting big on Ethereum?
The struggling biotech firm plans to:
- Rebrand as ETHZilla Corporation
- Create an ETH treasury through a $425M private placement
- Issue up to $150M in debt securities
- Partner with Electric Capital for yield generation
The risky crypto pivot: Desperation or innovation?
180 Life Sciences’ decision comes after:
| Year | Challenge |
|---|---|
| 2020 | IPO launch |
| 2024 | $141.5M accumulated deficit |
| 2025 | Market cap shrinks to $17M |
Corporate crypto treasuries: Growing trend or red flag?
While following MicroStrategy’s Bitcoin playbook, critics warn:
- Volatile crypto assets may not align with corporate objectives
- Biotech firms should focus on scientific innovation
- SEC scrutiny of corporate crypto activities is increasing
What this means for Ethereum and crypto markets
The move could:
- Increase institutional ETH holdings
- Validate crypto as a capital allocation tool
- Set a precedent for struggling public companies
This high-stakes gamble could either revive 180 Life Sciences or become a cautionary tale about corporate crypto pivots. The outcome will test whether ETH can serve as a lifeline for distressed public companies.
Frequently Asked Questions
Q: How much has 180 Life Sciences lost since its IPO?
A: The company’s stock value has dropped 99.9% since its 2020 IPO.
Q: What percentage of ETH supply might corporations eventually hold?
A: Standard Chartered projects corporate treasuries could hold up to 10% of ETH’s total supply.
Q: Who will manage 180 Life Sciences’ crypto activities?
A: Venture firm Electric Capital will handle onchain yield generation.
Q: What was the company’s previous failed pivot attempt?
A: They unsuccessfully tried entering the blockchain-based online gaming sector.
