Nasdaq-listed 180 Life Sciences Plunges 99%, Turns to Crypto with Bold Ethereum Move

180 Life Sciences is making a bold shift into crypto by investing in Ethereum as part of its new strategic direction, following a massive 99% plunge in its stock value.

180 Life Sciences Shifts from Biotech to Ethereum with $425M Strategy

The Nasdaq-listed 180 Life Sciences Corporation plans to invest $425 million in Ether and rebrand as ETHZilla Corporation, marking a major shift away from its biotechnology origins amid mounting losses.

The funds will be raised through a private investment in public equity (PIPE) deal involving the sale of company stock, a strategy often used by crypto-focused investors. In addition to the equity raise, the firm has received approval to issue up to $150 million in debt securities.

Once the Ether treasury is set up, Electric Capital will manage it, helping generate returns through on-chain activities.

180 Life Sciences, originally a biotech firm founded in 2016, went public in 2020. Since then, its stock has dropped over 99% and now trades below $3, with a market cap of around $17 million.

The firm reported an accumulated deficit of more than $ 141.5 million and a working capital deficit of approximately $1.6 million by the end of 2024

Public Firms Turn to Crypto Treasuries to Lift Share Value

Public companies are increasingly using crypto treasury strategies to boost their share prices. A key example is 180 Life Sciences, which began shifting its focus last year by entering the blockchain space and planning to launch an online casino.

This trend is partly inspired by Michael Saylor’s approach of buying Bitcoin as a treasury asset, leading more firms to add crypto to their balance sheets.

Continuing the trend, Nasdaq-listed Mill City Ventures revealed plans to raise $441 million for a Sui strategy,  agri-tech firm Nature’s Miracle announced up to $20 million in investments in XRP, and consumer products company Upexi disclosed a $16.7 million purchase of Solana.

Charles Schwab reports that more public companies are using crypto treasury strategies to boost their share prices. But critics are concerned, as many of these firms are shifting away from their original business goals and investing large sums into volatile crypto assets.

Despite the risks, the trend is growing. Standard Chartered predicts that companies could eventually hold up to 10% of all Ether, showing increased interest in using assets beyond Bitcoin for their reserves.