Forum, formerly ETHZilla, has rebranded and shifted focus from Ethereum accumulation to tokenized assets, resulting in a stock surge.
Shares of ETHZilla experienced a notable increase of over 13%, hitting a monthly high of $3.91 following its rebranding to Forum and the decision to abandon its strategy of accumulating Ethereum.
Originally known as 180 Life Sciences, the company had aimed to serve as a public investment fund in digital assets, raising $565 million with backing from early investor Peter Thiel. However, the steep decline in Ethereum's price—down 50% since its initial purchases in August—prompted a strategic pivot.
In response to the market changes, Forum sold $40 million worth of Ethereum in October to fund stock buybacks and subsequently liquidated 24,291 ETH valued at $74.5 million in December to settle debts. This marked a significant shift away from its previous aggressive cryptocurrency acquisition approach.
The rebranded company is now focusing on real-world assets (RWA). This month, Forum acquired a portfolio of mortgage loans valued at $4.7 million, which it aims to transfer to an Ethereum-based Layer 2 network, anticipating an annual yield exceeding 10%. Additionally, the firm has invested in two aircraft engines for tokenization through the SEC-regulated platform Liquidity.io.
Management indicated that future growth will rely on revenues from the new RWA platform instead of cryptocurrency holdings. Despite trading significantly lower than its August peak of $100, Forum still holds 93,790 ETH, valued at approximately $174.8 million, making it the ninth-largest corporate holder of Ethereum.
Meanwhile, Peter Thiel and his Founders Fund have completely divested their interests in the company.
