Shares of ethzilla (Ethz)Formerly known as the Biotech Firm 180 Life Science, nearly 30% fell on Friday after the company revealed that shareholders filed to offer up to 74.8 million convertible shares.
The offer triggered concern for dilution, a process where existing shareholders’ efforts lose value when more shares enter the market. For investors, this means that their ownership disc is shrinking even if the company’s total value does not change.
Following the issue of new shares, the company’s outstanding shares will increase by approx. 46% to 239.3 million from 164.4 million, according to archiving. The company does not receive any income from the shareholders who sell their converted shares.
Earlier this month, Ethzilla redirected to a crypto tax company and revealed that it owns 82,186 ether, worth about $ 349 million at current prices, along with $ 238 million in cash equivalents. The ether was acquired at an average price of $ 3,806.71 per year. Token. News about the pivot and the size of the holdings sent shares waving on August 11, lifting the stock 80% years to date before Friday’s sharp reversal.
The strategic shift has also drawn heavy weight backers.
Peter Thiel, who has publicly supported Ethereum, has a 7.5% share in ETHz through his founder fund. The fund also owns 9.1% of Bitmine Immersion Technologies, which recently raised $ 250 million to build its own Ethres reserves. Thie’s commitment highlights a broader effort by influential investors that Ethereum could anchor the next generation of financial infrastructure.
Ether in itself has regained momentum in 2025 after hanging behind other Altcoin’s last year. The token has increased by 38% years to date, Bitcoin’s 24% increase and Coindesk 20-index’s 17% gain. For context, Bitcoin increased 121% by 2024, while Ether added only 31%. The reversal coincides with the legislative clarity in the United States that has prompted Wall Street institutions to adopt Ethereum as a base layer for launching new financial products and services.
Despite the increase in price and interest from investors, ETHz shares moved towards the broader trend on Friday. NASDAQ, S&P 500 and DOW were all higher after comments from Federal Reserve -President Jerome Powell, while Ether got 9% over the last 24 hours.
The sale emphasizes the tension between Ethz’s promise as a large listed Etherkasse and investor turmoil over the short term. While the company’s balance is expressing it among the largest Etherminers in Business, shareholders weigh whether this promise can offset the risk of being cut into smaller pieces.
