His business is now more risky, but more profitable, says analyst.
Ethzilla will seek to increase your ETH holdings through Staking and Defi strategies.
180 Life Sciences (ATNF), a biotechnological company that quotes in the Nasdaq, honored his name and gave a 180 -degree turn.
Is that the signature specialized in drug research and discovery joins to the list of companies that are creating treasury with Ether (ETH), the native cryptocurrency of Ethereumas reserve assets.
The striking thing is that this change of strategy comes hand in hand with a rebranding. It is now called Ethzilla and his ticket is Ethz. “180 Life Sciences has evolved. The ‘Zilla’ has aroused. A new identity. Eth’s productive utility. A commitment to the community. The future belongs to those who feed Zilla,” was the presentation who made the firm to publicize its new identity, highlighting its transformation into a true Eth Godzilla.
Alan Sumler, financial market analyst, Consider that the “company’s strategy is innovative and profitable.” In addition, he explains: “The company recently acquired a large amount of ETH. It is important Investment income from your ETH holdings. ”
Ethzilla has 97,700 ETH, valued at 409 million dollars, and It is the tenth institutional entity with more Ether units in its corporate balances.
As reported by cryptootics, Ethereum’s native currency became the new love of Wall Street. It is that more and more companies are acquiring ETH through various debt and loan instruments, a strategy similar to that implemented by Michael Saylor, CEO of Strategy, with Bitcoin (BTC).
Through the issuance, companies can finance their ETH purchases without depending on their operational income. Unlike accumulating bitcoin, ETH allows you to generate additional yields through staking.
On this point, Sumler clarifies that Ethzilla plans to display a strategy that generates greater yields than the traditional Eth Staking, and adds: “Assets management will benefit through a combination of staking, loans and private agreements.”
That is, ethzilla will not limit the staking, but it will seek higher yields managing its assets with strategies of the decentralized finance ecosystem (DEFI).
This combination of staking, loans and private agreements with DEFI protocols allows you to take advantage of decentralized tools to generate income without selling your ETH. These strategies allow to monetize the treasury through the use of platforms such as AAVE, UNISWAP or agreements with Ethereum ecosystem projects.
For example, in AVE they can obtain income by providing your ETH to other users and charging an interest, while in Uniswap they can provide liquidity to an exchange pool and receive commissions for each operation carried out with those funds.
When implementing these strategies, Sumler believes that the “business is now more risky, but more profitable” because, if it runs well, the firm can obtain passive returns with a light operational structure.
It must also be clarified that now the business is more risky, since ETH is a volatile and marketing asset. For that reason, For Ethzilla to have a good performance, it will be essential that the macroeconomic context It is favorable for this type of assets and does not arise new geopolitical tensions that impact financial markets.
Any rise in inflation or interest rate in the United States can create a bearish pressure on the price of ETH, impacting fully on the business that drives Ethzilla.
By way of conclusion, the analyst remarks that “the new strategy is interesting” and points out: “While we observe how the company implements it, I qualify it as a position to maintain the action.”
