Down 99%, biotech firm 180 Life Sciences pivots to crypto with ETH bet

Nasdaq-listed 180 Life Sciences Corp plans to put heavy successful Ether and rebrand arsenic ETHZilla Corporation, a strategical pivot distant from its biotechnology origins amid mounting losses.

On Tuesday, the institution announced a $425 cardinal backstage placement aimed astatine gathering an Ether (ETH) treasury reserve. The funds are being raised done a backstage concern successful nationalist equity (PIPE) woody involving the merchantability of communal stock, a operation often utilized by crypto-focused investors.

Additionally, the institution disclosed it has support to contented up to $150 cardinal successful indebtedness securities.

Once the Ether treasury is established, task steadfast Electric Capital volition enactment arsenic the company’s outer manager, overseeing output procreation done assorted onchain activities.

Founded successful 2016 arsenic a clinical-stage biotechnology firm, 180 Life Sciences went nationalist successful 2020. Since its archetypal nationalist offering (IPO), the banal has plunged implicit 99.9%, present trading beneath $3.00 with a marketplace capitalization of astir $17 million.

180 Life Sciences Corp, trading nether the ticker ATNF, has performed poorly since going public. Source: Google Finance

The crisp diminution is mostly attributed to a deficiency of revenue, mounting losses and repeated shareholder dilution to rise capital.

As of the extremity of 2024, the institution reported an accumulated shortage of much than $141.5 cardinal and a moving superior shortage of astir $1.6 million.

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Penny stocks pivot to crypto amid mounting concern pressures

180 Life Sciences began its firm pivot past year, announcing plans to participate the online gaming marketplace by adopting blockchain exertion and launching an online casino.

Its displacement reflects a broader trend: hundreds of companies person added crypto to their equilibrium sheets, inspired partially by Michael Saylor’s strategy of acquiring Bitcoin (BTC) arsenic a treasury plus starting successful 2020.

More recently, Nasdaq-listed Mill City Ventures revealed plans to rise $441 cardinal for a Sui (SUI) strategy; agri-tech steadfast Nature’s Miracle announced up to $20 cardinal successful investments successful XRP (XRP); and user products institution Upexi disclosed a $16.7 cardinal acquisition of Solana (SOL).

Source: Santiago R. Santos

According to Charles Schwab, much nationalist companies are utilizing crypto treasury strategies to boost stock prices.

“What immoderate critics find troubling with this strategy is that galore of these companies started disconnected with an wholly antithetic concern objective,” Schwab noted. “Putting ample chunks of currency successful a historically volatile plus that isn’t tied to their halfway concern has raised a reddish emblem oregon two.”

Nevertheless, the inclination shows nary signs of slowing, arsenic corporations progressively look beyond Bitcoin for their crypto reserves. According to Standard Chartered, companies could yet clasp up to 10% of Ether’s full proviso arsenic crypto treasury strategies summation momentum.

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