In a significant shift at the intersection of crypto and equity markets, publicly-traded company ETHZilla has completely abandoned its Ethereum-based treasury strategy following a catastrophic 96% collapse in its share price from its 2025 highs. The company will now rebrand as Forum Markets (ticker: FRMM) and pivot its business model towards tokenized real-world assets (RWAs).
The strategic pivot comes after ETHZilla's stock price plummeted an incredible 96% from its peak, marking one of the most evident failures of the so-called public crypto treasury model. The company had built its identity around holding ETH as its primary treasury reserve, mirroring corporate Bitcoin strategies, with the goal of achieving long-term crypto returns and serving as a high-conviction proxy for Ethereum for public market investors.
However, the market context changed rapidly, and Ethereum's volatility exposed the risks of concentrating corporate reserves on a single digital token. The company's balance sheet was eroded, and investor confidence crumbled due to severe price swings. Intense selling pressure on the stock led to the loss of nearly its entire market value from the highs.
In response to this failure, the company announced a comprehensive strategic review and confirmed it will adopt the name Forum Markets starting March 2. This shift aligns with a broader industry transition toward blockchain representations of stable, cash-flow-generating assets. The signal is clear: the market now favors more stable and diversified business models.
The ETH treasury strategy, while attractive during bullish cycles where rising asset prices boosted corporate valuations, proved fragile during market downturns, exposing shareholders to concentrated volatility. The company was dependent on a single asset, with any significant price variation directly reflecting on the corporate value. This structure offered little flexibility in risk management and limited hedging possibilities compared to diversified treasuries. Furthermore, public market investors tend to prioritize predictable cash flows and operating revenues, elements that passive crypto holdings do not always guarantee. As volatility persisted, the strategy became increasingly unsustainable.
While crypto treasury models showed critical weaknesses, tokenized real-world assets have been gaining ground in the blockchain industry. Institutional investors are showing greater interest in these instruments, which generate yield and present lower volatility compared to speculative cryptocurrencies. ETHZilla's decision therefore represents a strategic realignment, not a short-term reaction.
This turnaround sends a strong signal to the market: treasury strategies concentrated on a single asset carry high structural risks. Crypto companies, especially public ones, must adopt more flexible models to face prolonged periods of volatility. Simultaneously, this move confirms the growing relevance of tokenization as a sustainable business line. Other companies may review their own treasury policies and orient toward greater diversification.
The decline of ETHZilla highlights a broader change in the crypto sector, with companies moving away from purely speculative exposure to adopt hybrid financial structures. Firms are beginning to combine the efficiency of Ethereum and blockchain technologies with the performance of traditional investments to attract capital. With volatility continuing to characterize tech asset markets, the approach integrating real value and decentralized infrastructure appears more solid in the long term.
