Shares in the digital asset treasury fell after it announced the sale of some of its Ethereum holdings.
Ethzilla shares (ETHZ) fell 15% on Tuesday following the company’s decision to sell $74.5 million worth of Ethereum to pay down debt.
Shares fell from just over $6 to an intraday low of $5.12. During after-hours trading, they hovered around $5.35. according to to Google Finance. Ethzilla has lost 21% in share value since the Nasdaq opened on Monday morning and is down 95% since it peaked above $100 in August.
Pivot to RWA tokenization
The crypto treasury company sold approximately 24,291 ETH for $74.5 million at approximately $3,069 per token to repay convertible debt. The sale, disclosed to the SEC, leaves the company with approximately 69,800 ETH. Ethzilla is now the tenth largest Ether DAT and falls under BTCS Inc., which owns 70,000 ETH.
“The company believes its future value will be determined by revenue and cash flow growth from our RWA [real world asset] tokenization business,” the company stated on Monday.
As part of the redemption of our outstanding senior Secured Convertible Notes, ETHZilla sold 24,291 ETH for approximately $74.5 million. We intend to use all or a significant portion of the proceeds to finance the redemption. The dashboard below excludes cash on the balance sheet that… pic.twitter.com/c5HMDrf48X
— ETHZilla (@ETHZilla_ETHZ) December 22, 2025
This move reflects broader challenges that crypto treasury companies face during market volatility. Ethzilla had exited biotech in July 2024 and switched to an ether-focused strategy after its biotech stocks plummeted.
After an initial spike in August, stocks began to retreat as crypto markets cooled and ether prices fell sharply. ETH has fallen below $3,000 again and is down 40% from its all-time high in August, while many analysts have predicted the start of a bear market.
Dumping DAT stock
The world’s largest Ether DAT, Bitmine Immersion Technologies, also had a rough day on Tuesday, with shares (BMNR) falling 4.2% to end below $30 on Tuesday. Bitmine shares are down 78% from their July peak, but remain up 280% since the start of the year. The company remains one of the few DAT success stories this year.
You might also like:
The Tom Lee-chaired DAT has remained bullish, buying the dips and accumulating more Ether, while others have halted their purchases or sold their shares.
Other crypto government bonds have also had a painful week, including Solana DATs Classover Holdings Inc (KIDZ), which fell 15% on Tuesday, and VisionSys AI Inc (VSA), which fell 13%.
Hyperlink DAT Nuvve Holding Corp (NVVE) lost 12% and Eightco Holdings (ORBS), a WLD Treasury, lost 11% on the day.
SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).
#Ethzilla #stock #drops #DAT #dumps #quarter #ETH #supply