Crypto investment company ETHZilla has sold a chunk of its Ether (ETH) holdings to pay off debt as the broader crypto market continues to slide. In a recent filing with the U.S. Securities and Exchange Commission (SEC), the company confirmed it sold 24,291 ETH for about $74.5 million. That works out to an average price of around $3,068.69 per token. After the sale, ETHZilla still holds roughly 69,800 ETH in its reserves.

The company plans to use most, if not all, of the money from the sale to repay its outstanding senior secured convertible notes — a form of debt that can be converted into company shares later.

ETHZilla wasn’t always in crypto. Until recently, it was known as 180 Life Sciences Corp, a biotech firm. But after seeing its stock price crash by over 99.9% since going public in 2020, the company changed its name and business model on July 29, shifting focus entirely to Ethereum-based investments.

In December, ETHZilla also made two key acquisitions — buying a 20% stake in Karus, an AI-powered auto finance startup, and a 15% stake in Zippy, a digital home loan company. These moves are part of its new strategy to grow its crypto-focused portfolio.

Despite these efforts, ETHZilla’s stock dropped 8.7% on Monday and has fallen more than 65% so far this year, according to Google Finance.

As crypto prices fall, other companies are also reshuffling their digital asset holdings to manage risk and strengthen their finances. In October, another Ether-focused firm called FG Nexus sold over 10,900 ETH to fund a stock buyback program. They also borrowed funds to speed up the share repurchase, buying back about 3.4 million shares at an average of $3.45 each.

In November, telecom firm Sequans Communications used money from selling 970 Bitcoin to pay down half of its convertible debt. This move brought their total debt down to $94.5 million and reduced their Bitcoin holdings by nearly one-third.

Even Strategy, the first publicly traded company to adopt a Bitcoin treasury strategy, raised nearly $748 million in December by selling over 4.5 million Class A shares. The extra cash is helping the company navigate the ongoing crypto slump.

Crypto treasuries are clearly feeling the pressure as both Bitcoin and Ether prices have pulled back from recent highs. While some companies are still holding onto their digital assets, others are choosing to sell off portions to reduce debt and stabilize their balance sheets.

As of September, more than 190 public companies were holding Bitcoin on their books — totaling over 5% of the total Bitcoin supply. Ethereum is seeing similar interest, with about 27 public companies collectively holding around 6 million ETH, also about 5% of its total supply.

Keywords: ETHZilla, Ethereum, Ether sale, crypto treasury strategy, convertible notes repayment, digital asset management, crypto market downturn, company rebranding, Bitcoin holdings, FG Nexus, Sequans Communications, Strategy Inc., crypto stock performance