ETHZilla Bets Big on Ethereum’s Stablecoin Power and Layer-2 DeFi Expansion

ETHZilla is staking its future and hundreds of millions of dollars on Ethereum’s dominance in stablecoin settlement and real-world asset tokenization. CEO McAndrew Rudisill says the company, now the eighth-largest public Ethereum treasury, is going all-in on Ether not just to ride price gains but to fuel a new business model that bridges traditional and decentralized finance.

From Biotech Bust to Digital Asset Pioneer

Originally launched as Life Sciences Corp, a biotech firm that struggled with declining revenues, ETHZilla rebranded and pivoted to crypto in July following the passage of the US GENIUS Act, which aims to establish regulatory clarity for stablecoins. This move propelled the company to acquire over 102,000 ETH worth almost $490 million at recent market prices placing ETHZilla among the top Ether-holding institutions globally.

“Ethereum is effectively a gateway for money supply globally to transmit in US dollars,” says Rudisill, highlighting Ethereum’s centrality in $160 billion in stablecoin transactions just this year, as reported by DefiLlama.

Focus: Layer-2 Yield & Strategic Growth

ETHZilla isn’t stopping at just holding ETH. Instead, the company aggressively deploys funds into Layer-2 protocols and yield-generating DeFi strategies aiming for substantially higher returns than simple Ether staking or passive treasury models.

• The company recently raised $350 million through convertible debentures and authorized a $250 million stock buyback to reinforce its balance sheet.
• Instead of targeting a set number of tokens, ETHZilla’s goal is to accumulate “as much Ether as possible” and actively support protocol development, especially in areas connecting Ethereum’s Layer-2s to traditional financial applications.

“We are taking the cash from the Ether to be deployed to buy more and effectively help further build out the L2 network, because that’s ultimately what’s going to allow Ethereum to expand,” Rudisill explains.

Price Outlook and Regulatory Impact

Rudisill is bullish on Ether’s price, predicting a move to $20,000 in the coming years as the network scales and stablecoin adoption drives new inflows.

• He foresees Ether breaking above $5,000 soon, “as the underlying base load on the infrastructure tightens.”
• Analysts expect the GENIUS Act’s final regulations on stablecoins to be a major market catalyst and further bolster institutional involvement.

The Broader Impact: Institutional Race for ETH

ETHZilla is not alone BitMine Immersion Technologies leads the pack with 2.65 million ETH while all Ether treasury companies together hold over 5.5 million ETH, about 4.5% of total supply. As Ethereum’s utility grows and bridges with traditional finance multiply, Rudisill expects more public companies will enter the Ethereum treasury race, though only those with clear, sustainable business models are likely to survive.

Looking Forward: Building Real Utility

ETHZilla distinguishes itself by not just being a crypto treasury play:

• The company commits to building a cash-flow-generating, Layer-2-focused business model.
• It plans to tokenize real-world assets and funnel capital into scalable protocol partnerships to generate sustainable yield for shareholders, going beyond short-term market hype.

“Our focus is on long-term technology development and real utility, not short-term financial maneuvers. The rebrand and pivot reflect a clear strategy for growth and innovation, not a reactionary move to stock performance,” Rudisill says.

ETHZilla’s bold strategy highlights how major corporate treasuries now see Ethereum not only as a reserve asset, but as a foundation for real-world finance and a platform to build the next wave of DeFi innovation.