From Ethereum Proxy to Strategic Retreat
Former Ethereum treasury firm ETHZilla has officially abandoned its single-asset balance sheet model, announcing a rebrand to Forum Markets. The company will trade under the new Nasdaq ticker “FRMM” beginning in early March.
The pivot marks a decisive break from its earlier strategy of positioning itself as a public proxy for Ethereum exposure. That model initially attracted speculative enthusiasm but ultimately proved fragile amid market volatility.
The Rise and Collapse of the Treasury Model
In August 2025, ETHZilla’s shares surged to $107 following the announcement of a $425 million Ethereum treasury plan. Investors viewed the structure as a leveraged vehicle for gaining ETH exposure through equity markets.
However, as Ethereum’s price retraced sharply, the stock unraveled. Shares recently traded near $3.91, representing a decline of roughly 96% from peak levels.
Investor Exodus and Asset Sales
The collapse was accelerated by investor exits and balance sheet adjustments. Notably, Peter Thiel’s Founders Fund divested its stake during the downturn.
As capital fled, the company began selling digital assets to reduce exposure. This retreat underscored the vulnerability of treasury-focused equity strategies during crypto bear phases.
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Structural Weakness of Single-Asset Exposure
Analysts argue that treasury models dependent on a single volatile asset face structural headwinds. When market conditions deteriorate, equity premiums evaporate rapidly.
Vincent Liu of Kronos Research noted that such strategies require sustained investor optimism to maintain valuation support. Without diversified revenue streams, firms risk becoming highly correlated with underlying asset cycles.
Pivot Toward Tokenized Real-World Assets
Under the Forum Markets identity, the company intends to focus on tokenized real-world assets rather than holding large crypto reserves. This shift aims to anchor operations in regulated infrastructure and revenue-generating activities.
The firm previously signaled interest in aviation-related leasing and tokenized asset structures. These initiatives reflect broader industry momentum toward blending blockchain rails with tangible assets.
Ethereum’s Broader Narrative Challenges
Ethereum itself has faced questions about long-term scarcity and fragmentation across layer-2 networks. Unlike Bitcoin, Ethereum does not operate under a hard supply cap, which some critics cite as a valuation concern.
Additionally, ecosystem fragmentation may dilute narrative cohesion. As liquidity spreads across mainnet and scaling solutions, investor clarity becomes more complex.
Lessons for Crypto Treasury Firms
ETHZilla’s trajectory illustrates the risks of conflating equity valuation with underlying crypto exposure. When prices rise, treasury models can amplify gains; when they fall, the decline accelerates.
The rebrand to Forum Markets represents an acknowledgment that sustainability requires diversification. In a maturing digital asset landscape, long-term viability may depend less on passive balance sheet exposure and more on operational revenue and adaptive strategy.
