We mentioned that ETHZilla was an important signal for the cryptocurrency reserve company bubble when the first sales announcement came. Today, a new announcement came and they are selling more. While BTC returned to 89 thousand dollars, it targets below 80 thousand dollars as it could not gain bear flag support. Why is ETHZilla so important?
ETHZilla Sales
ETHZilla (ETHZ) company sold 24,291 ETH to redeem more convertible bonds, according to its latest announcement. Ethereum as recently as June 
$3,030.63 reserve companies were born and ETHZilla He gave up too soon. The reason is falling stock prices. ETHZ team for the second time to support falling share prices and reduce outstanding debt ETH sells.
The Nasdaq-listed company invests in the largest altcoin by market value, and this development is also worrying for other altcoin reserve companies. The new ETH sale of approximately $75 million reduced on-hand reserves to 69,800. ETHZ shares reached ATH in August, during the best days of the reserve company bubble, as ETH was recovering. Now it is 96% below the peak and the extreme rise is now causing a crash.
Announcing its first sale at the beginning of the last quarter, ETHZilla sold $40 million worth of Ether and bought back shares. The share price, which was around $20 in those days, is now below $7, so as the shares lose blood, it may continue to melt the ETH reserve of approximately $200 million, piece by piece.
Cryptocurrency Reserve Company Bubble
Every bubble is good, and for the rise of cryptocurrencies, the reserve company bubble should not have burst so early. However, what we see in the ETHZilla example shows that the bubble is starting to deflate. Strategy He even tries to keep his mNAV above 1, which at the time of writing is 1.08. When this number drops below 1, demand for shares traded at a premium weakens and they cannot issue more debt and buy BTC.
Strategy still has an advantage because it has created over $2 billion in cash reserves for its early payments and has huge BTC His savings can ensure that the company can survive as the largest BTC treasury company even if it pays off all its debts. Its cost is low compared to others. Companies that copied Strategy’s strategy made acquisitions in the last few months, and falling prices caused them to quickly incur losses. If we don’t see a recovery in cryptocurrencies, more reserve companies may stop following Strategy’s path and follow ETHZilla’s path.
