3/ $ETHZ is a digital asset treasury company centered on Ethereum. It owns 102k eth (worth $388 mln) and about $550 million in cash, so total assets of near $1 billion with a market cap of just $250 million, trading at a heavy discount to assets for the reasons below.

4/ Digital Asset Treasuries (DAT) like $ETHZ, typically trade at a multiplier of their net assets. For the case of MicroStrategy this has been roughly 1.5-1.8x. Ethzilla currently trades at around 0.5x of its Ethereum assets, with a clear 3x line.

5/ DATs provide additional value compared to a direct ETH purchase as when they trade at premiums to their assets, they issue more shares and buy ethereum, and when it's at a discount they buyback shares. This way the ETH owned per share always rises in addition to yielding.

6/ Currently trading at half its asset value, $ETHZ provides a clear path to double on this fundamental alone by the time earnings are released in two weeks, but that is far from the only reason of my investment.

7/ Last month, the company raised $500 million on a convertible note that it now has in cash on its balance sheet. This convertible debt bears no interest and converts at a share price of $31.5, nearly double from where we are now. (Remind you of any other play with convertibles?

8/ More interestingly. The company hinted this capital was raised for Real World Asset tokenization - think stable coins. And we all have seen the run Circle has been on in this space.

9/ If $ETHZ is successful in launching a stable coin or tokenizing another RWA like a stock, it would then collect yields on the amount of coins issued. Stable coin companies are the most profitable per employee at the moment. And Ethzilla already has 500 million from investors.

10/ DATs have, so far, in their first quarter in existence, competed based on who can raise the more capital whereas now that is the first earnings season, it will switch to who can generate the most yield on their treasury.

11/ As opposed to other DATs, $ETHZ is deploying their eth across various protocols which generates double the yield other treasuries do. Updates released by the company so far show a near 10% APY return as opposed to other DATs yielding at most 3%.

12/ This means that when valuations switch to include earnings multiples, with earnings season hitting all DATs in two weeks, the focus will switch to companies that are earning the most profit and $ETHZ is leading the way.

13/ Peter Thiel is an investor in this stock having purchased near 7% of the outstanding shares. Rumors of a buyout by BitMine have also been circulating for the past month online.

14/ A key driver of the price here is also the price of Ethereum which is currently down from its ATH and waiting on positive news from the Fed, China talks which is also likely to grow further growth.

15/ The value of Ethereum has been shown to be linked to the asset pool that is on chain (stable coins mainly) which are seeing a dramatic influx after the GENIUS act and provide yet another strong driver this quarter for $ETHZ.

16/ These fundamental reasons are enough to expect a dramatic rise in the stock which was at $70 per share with lower ethereum prices not long ago. However there is a technical kicker (remind you of anything?) that is multiplying potential growth even faster.

17/ Shares of Ethzilla are down near 35% this month after they announced and completed a 10-1 reverse split. This event, as was for $BYND, was dramatically misunderstood by investors and not highlighted by analysts due to Ethzilla's small size.

18/ A reverse stock split, pushing the price above $10, allows institutions, which are a key source of capital for DATs to invest in the stock. Which is only a positive and has no negative affect on ethereum per share or any other metric.

19/ Yet, the market has again misunderstood this move and given a 35% discount to Ethzilla on a stock that was already beaten down yet full of potential. When asked about the type of play I'm looking for, that's exactly it.

20/ I will be uploading a full video tomorrow with my investment thesis around $ETHZ and I do want to clarify I remain an investor in $BYND as well and my thesis on it has remained unchanged from the one on YouTube.

@capybaraReborn At least he said that he remains a $BYND investor and his thesis remained unchanged from the one on YouTube! WHAT COULD POSSIBLY GO WRONG !

@capybaraReborn Its even easier... Just buy ETH, if you dont, the DAT wont go up :)

@capybaraReborn Why does the weekly chart look like this? Did it reverse split? This seems to be a way to extract market cap

@capybaraReborn 10 racks into this play at 4am I what I'm hearing 😆

@capybaraReborn I’m ready

@capybaraReborn In capybara we trust 💯

@capybaraReborn Can u sell ur ethz and buy bynd

@capybaraReborn Thanks for the info bud 👍

@capybaraReborn well that's refreshing

@capybaraReborn My strategy plan. ⬇️Show more