ETHZilla falls 38% premarket on offering of up to 74.8M shares

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ETHZilla (NASDAQ:ETHZ [https://seekingalpha.com/symbol/ETHZ]) shares are down nearly 38% in premarket trading on Friday after Ether treasury company’s shareholders filed [https://seekingalpha.com/filing/10333292] to offer up to 74.8 million convertible shares.

The company, formerly known as 180 Life Sciences, gained 164% so far this year. However, if premarket declines hold ETHZilla could lose all those gains.

Earlier in August, the company closed its private placement, raising $425M [https://seekingalpha.com/pr/20188367-180-life-sciences-closes-425-million-private-placement-to-advance-its-ethereum-treasury#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] in gross proceeds through a private investment in public equity transaction for the purchase and sale of common stock and pre-funded warrants.

It announced that it intends to begin purchasing Ethereum and deploy a large percentage of the $425M in addition to continuing its prior legacy iGaming operations.

The company also announced [https://seekingalpha.com/news/4483884-180-life-sciences-holds-82186-eth] in August that it has total holdings of 82,186 Ether at an average acquisition price of $3,806.71, which is now valued at about $349 million.

MORE ON 180 LIFE SCIENCES

* ETHZilla (180 Life Sciences) Pivots To Ethereum Treasury Strategy [https://seekingalpha.com/article/4814010-ethzilla-180-life-sciences-pivots-to-ethereum-treasury-strategy]
* 180 Life Sciences: Biotech Pivots Into Crypto, Shares Skyrocket? Not So Uncommon [https://seekingalpha.com/article/4812758-180-life-sciences-biotech-pivots-into-crypto-shares-skyrocket-not-so-uncommon]
* 180 Life Sciences drops 4%, closes $425M private placement [https://seekingalpha.com/news/4478122-180-life-sciences-drops-4-closes-425m-private-placement]
* Financial information for 180 Life Sciences [https://seekingalpha.com/symbol/ETHZ/income-statement]