Shares of 180 Life Sciences Corp. (NASDAQ:ATNF) soared 54% in Monday’s after-hours trading after the biotechnology company completed a $156 million private offering to boost its Ethereum (CRYPTO: ETH) reserves.
ATNF shares are exploding to the upside. See the live chart here.
Using Debt To Buy ETH
The firm issued $156 million in convertible notes due 2028 to an unknown institutional investor, according to a press release.
The proceeds will be used to buy more ETH, 180 Life Sciences said, expanding on its recently announced treasury strategy focused on the second-largest cryptocurrency.
The latest offering follows the company's $425 million private placement led by more than 60 institutional and crypto-native investors.
The firm plans to officially rebrand as ETHZilla Corporation, reflecting its ETH-focused strategy.
See Also: ICO-Era Ethereum Whale Offloads $10 Million In ETH Even As Crypto Targets New All-Time High: What’s Going On?
Concerns Around Overleveraged Play
This offering follows an increasing pattern of leveraging debt and equity to buy ETH, similar to Michael Saylor’s Strategy Inc.’s (NASDAQ:MSTR) model, which is focused on Bitcoin (CRYPTO: BTC).
However, Ethereum co-founder Vitalik Buterin has warned that the overleveraging practices of companies holding ETH could potentially trigger a collapse of the cryptocurrency.
Price Action: At the time of writing, ETH was trading at $4,307.13, down 0.44% in the last 24 hours, according to data from Benzinga Pro.
Shares of 180 Life Sciences closed 11.33% higher at $3.340 during Monday’s regular trading. Over the last month, the stock has exploded 271%.
As of this writing, the stock exhibited a very high Momentum score. Visit Benzinga Edge Stock Rankings to see how it compares with other ETH-focused companies, such as BitMine Immersion Technologies, Inc. (AMEX:BMNR).
Photo Courtesy: Alexandru Nika on Shutterstock.com
Read Next:
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
