ETHZilla (ETHZ) shares dropped nearly 30% on Friday after the company announced a shareholder offering of up to 74.8 million convertible shares, sparking fears of dilution. This offering will increase the total outstanding shares by approximately 46% to 239.3 million, leading to concerns about the value of existing stakes. Despite the market reaction, ETHZilla maintains a robust financial position with 82,186 ether, valued at $349 million, and $238 million in cash equivalents. The company's strategic pivot to a crypto treasury firm has attracted significant investors, including Peter Thiel, who holds a 7.5% stake. Ether's 38% year-to-date gain, outpacing Bitcoin's 24% rise, underscores the potential of ETHZilla's holdings, though dilution risks remain a concern for investors.