Ethereum treasury firm ETHZilla was forced to sell Ethereum to pay off its debt.
The firm's filing with the U.S. Securities and Exchange Commission indicates that it sold 24,291 ETH for $74.5 million. This means that the company's employees sold the cryptocurrency at an average price of $3,069. As of December 19, the company held 69,800 ETH, worth $207.7 million at the current exchange rate. This metric places ETHZilla seventh among companies holding the largest ETH.
Top 10 Companies by Ethereum Holdings (data for ETHZilla is outdated)
ETHZilla employees were forced to sell ETH to buy back convertible bonds from investors issued to raise funds for the Ethereum purchase. In other words, the company's business model failed, failing to stand the test of time. The cause of this fiasco was the bearish trend in the ETH market, which resulted in the coin's price declining by 40% from its August peak of $4,963.
Recognizing its failure, ETHZilla's management attempted to rectify the situation by investing in the AI startup Karus and the lending platform Zippy in December. However, these actions had no positive impact on the company's stock price, which fell by almost 9% in the last 24 hours and by 65% since the beginning of 2025.