Shares of 180 Life Sciences Corp. ( ATNF ) soared 54% in Monday’s after-hours trading after the biotechnology company completed a $156 million private offering to boost its Ethereum (CRYPTO: ETH) reserves.

ATNF shares are exploding to the upside. See the live chart here.

Using Debt To Buy ETH

The firm issued $156 million in convertible notes due 2028 to an unknown institutional investor, according to a press release.

The proceeds will be used to buy more ETH, 180 Life Sciences ( ATNF ) said, expanding on its recently announced treasury strategy focused on the second-largest cryptocurrency.

The latest offering follows the company's $425 million private placement led by more than 60 institutional and crypto-native investors.

The firm plans to officially rebrand as ETHZilla Corporation, reflecting its ETH-focused strategy.

See Also: ICO-Era Ethereum Whale Offloads $10 Million In ETH Even As Crypto Targets New All-Time High: What’s Going On?

Concerns Around Overleveraged Play

This offering follows an increasing pattern of leveraging debt and equity to buy ETH, similar to Michael Saylor’s Strategy Inc.’s model, which is focused on Bitcoin (CRYPTO: BTC).

However, Ethereum co-founder Vitalik Buterin has warned that the overleveraging practices of companies holding ETH could potentially trigger a collapse of the cryptocurrency.

Price Action: At the time of writing, ETH was trading at $4,307.13, down 0.44% in the last 24 hours, according to data from Benzinga Pro.  

Shares of 180 Life Sciences ( ATNF ) closed 11.33% higher at $3.340 during Monday’s regular trading. Over the last month, the stock has exploded 271%.

As of this writing, the stock exhibited a very high Momentum score. Visit Benzinga Edge Stock Rankings to see how it compares with other ETH-focused companies, such as BitMine Immersion Technologies, Inc. ( BMNR ) .

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