Ethzilla Corp. disclosed early redemption of $516 million of its 2028 convertible notes, paying 117 % of principal plus accrued interest, with the redemption to be completed by December 30.
The move trims a significant portion of the company’s long‑term debt. At the end of Q3 2025, Ethzilla reported $1.01 billion in total assets, $558.9 million in cash and cash equivalents, and a debt‑to‑equity ratio of 1.23. The $516 million redemption reduces leverage and improves the debt‑to‑equity profile, while the company’s net loss of $208.7 million—largely driven by one‑time non‑cash items—remains a concern.
Ethzilla’s strategic pivot from a biotech focus to decentralized finance and tokenization underpins the timing of the redemption. By removing the convertible notes, the company frees cash that can be deployed into staking yields, new tokenization initiatives, and potential share repurchases. The redemption also eliminates the risk of future dilution that would arise if the company raised additional capital below the $30.10 conversion price, which is well above the current share price.
CEO McAndrew Rudisill said the redemption “strengthens our balance sheet and maximizes financial flexibility,” calling it a “critical streamlining of our capital structure.” He added that the company is focused on bringing real‑world assets on‑chain and accelerating revenue‑generating, cash‑producing capabilities.
While the redemption signals confidence in the company’s ability to service its remaining obligations, Ethzilla’s financials still reflect modest revenue of $4.1 million in Q3 2025—primarily from staking yields—and a 100 % gross profit margin that is offset by significant operating losses. The early redemption positions the company to pursue growth in the rapidly expanding tokenized asset market, but investors will continue to monitor how the company translates its DeFi strategy into sustainable revenue.
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