ETHZilla sold $74.5 million of ether to reduce debt and reposition its treasury, signaling a deliberate pivot away from an ETH-centric balance sheet. The transaction aligns the firm’s capital structure with a stated strategic shift toward real-world asset tokenization and on-chain securitization.
ETH sale mechanics, debt reduction, and the RWA pivot
ETHZilla disposed of approximately 24,291 ETH, raising $74.5 million at an average realized price near $3,068 per ETH to redeem outstanding senior secured convertible notes. The proceeds were explicitly used to redeem convertible debt, tightening the company’s leverage profile and removing a potential dilution pathway tied to debt-to-equity conversion. A convertible note is debt that can be exchanged for equity under specified conditions.
Following the redemption, ETHZilla reports it still holds roughly 69,800 ETH, estimated at about $207 million, and said it will continue periodic balance-sheet disclosures. The sale also follows an earlier ETH disposition of around $40 million in October 2025 that was executed for stock repurchases, framing the latest move as part of a broader treasury and capital-allocation reset.
In parallel, the firm is reorienting operations toward RWA tokenization and issuance infrastructure on Layer-2 networks. ETHZilla committed $5 million to acquire a 15% stake in Zippy, Inc., and partnered with Liquidity.io to support issuance of tokenized assets on Ethereum Layer-2s. The targeted collateral focus is manufactured home loans and chattel loans, with a plan to aggregate these loans for on-chain securitization and fee-driven revenue generation. The company reported $4.1 million in revenue in the first six weeks after refocusing on RWA activities, and it framed board appointments of Angela Dalton and Michael Edwards as steps to accelerate institutional adoption.
Risk and reward trade-offs are explicit in the strategy shift. Tokenizing heterogeneous consumer loans introduces regulatory and legal complexity, valuation and liquidity management challenges, and heightened operational and smart-contract security requirements, while also facing competitive and execution pressure as compliant infrastructure scales. Conversely, a fee-based RWA model is positioned as a way to produce steadier cash flows, reduce direct exposure to crypto price volatility, and improve institutional receptivity through on-chain settlement paired with Layer-2 scalability.
