- ETHZilla, backed by Peter Thiel, sold $74.5 million worth of ether (ETH) in December 2025 to repay its bonds.
- The company has sold one-quarter of its entire ETH treasury this year, dropping its previous focus on building an ETH reserve.
- Other digital asset treasury (DAT) firms, including FG Nexus, have also begun selling crypto to reduce debt amid market declines.
- Several DATs use financial leverage, including bonds and preferred shares, that require periodic repayments.
- The crypto market lost about $500 billion in capitalization in 2025, forcing treasury companies to manage debts through asset sales.
In December 2025, ETHZilla, an Ethereum treasury company backed by investor Peter Thiel, sold $74.5 million of its ether holdings to pay down outstanding bonds. This marked a significant change in the company’s approach, as it previously stated intentions to maintain its ETH treasury.
This sale represents about one-quarter of the company’s total ETH treasury, following a $40 million sale in October 2025. In its latest filing with the SEC, ETHZilla no longer emphasizes growing or holding an ETH reserve, instead highlighting revenue generation through various decentralized finance (DeFi) protocols.
Other companies managing digital asset treasuries have taken similar steps. Firms like FG Nexus, Sequans, BitFarms, Genius Group, and Satsuma Technology have sold crypto holdings to address debts. Many of these entities use financial leverage, including corporate bonds, preferred shares, or equity convertibles, which require repayment and impact cash flows.
The broader crypto market, which lost approximately $500 billion in market capitalization since the start of 2025, has amplified financial pressures. Debts incurred through leverage increase risk during downturns, leading treasury firms to liquidate assets to meet obligations.
Some firms previously promoted long-term crypto holding strategies. For example, MicroStrategy‘s founder Michael Saylor advocated never selling Bitcoin (BTC). However, companies including MicroStrategy itself have since considered selling portions of their holdings to cover financial needs.
Financial leverage allows these treasury companies to amplify gains in rising markets but also magnifies losses when prices fall. Debt repayments and contractual obligations tied to bonds or preferred shares force companies to adjust their holdings in response to market conditions.
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