TLDR
- ETHZilla reported a transformative quarter with a strong push into crypto and real-world asset tokenization.
- The company secured $931 million in institutional capital across three financings.
- ETHZilla partnered with Liquidity.io, gaining a 15% stake in Satschel to support tokenization efforts.
- The firm deployed $257 million into Ether.fi and Puffer Finance to expand its liquid restaking activities.
- ETHZilla aims to begin bringing tokenized real-world assets on-chain in the coming weeks.
ETHZilla has reported its third-quarter results, marking a key shift towards crypto and asset tokenization. The company highlighted its initiatives in Ethereum restaking and plans for real-world asset tokenization. CEO McAndrew Rudisill emphasized that the quarter was transformative for ETHZilla, positioning the firm as a leader in decentralized finance (DeFi).
Strategic Push into Crypto and Real-World Asset Tokenization
ETHZilla is increasing its presence in crypto markets with a new strategy. The company has allocated its Ethereum holdings to major restaking platforms. McAndrew Rudisill noted, “This strategy provides compounding yield while supporting network security.” ETHZilla also announced its partnership with Liquidity.io, which includes a 15% equity stake in Satschel.
The new partnership is expected to drive ETHZilla’s ambitions to tokenize real-world and financial assets. This move positions ETHZilla for growth in what Rudisill described as a future multi-trillion-dollar market. The company aims to begin moving assets on-chain in the coming weeks.
ETHZilla’s financial backing is also growing. The company secured $931 million in institutional capital across three financings. These include a $425 million PIPE, a $156 million convertible note, and a $360 million convertible note. The capital infusion will help fund ETHZilla’s ventures into crypto and asset tokenization.
Quarterly Performance and Partnerships Strengthen Position
For the quarter, ETHZilla reported $4.1 million in revenue, all from Ethereum staking and rewards. The company’s gross profit was equal to its revenue. ETHZilla’s management reported zero CapEx for the quarter, ending with $559 million in cash and equivalents.
ETHZilla also deepened its relationship with Electric Capital, earning a 7.5% yield on deployed Ethereum. The company deployed $257 million into Ether.fi and Puffer Finance, expanding its liquid restaking activities. This approach has enhanced ETHZilla’s income and capital efficiency.
ETHZilla also continued its share repurchase program, spending $46.3 million to buy back 2,099,472 shares. This forms part of a $250 million share buyback plan approved by its board. The company will continue to repurchase shares at a price below NAV using proceeds from Ethereum sales.
ETHZilla Restructures Leadership for Crypto Focus
ETHZilla has made several leadership changes to better align with its new strategy. McAndrew Rudisill has become both chairman and CEO. John Saunders is now CFO, while John Kristoff takes on the SVP of corporate communications and investor relations role.
The company also appointed Jason New to its board. New is the vice chairman of investment banking at Lazard. These moves are part of ETHZilla’s restructuring to focus more on crypto tokenization.
ETHZilla’s transition to crypto is accompanied by the resolution of legal issues tied to its former identity as 180 Life Sciences. The company sold off its biotech assets and will continue holding iGaming assets until it generates tokenization-related cash flow.
ETHZilla expects positive adjusted EBITDA in the fourth quarter. It also anticipates yields between 3.5% and 4.5% from its Ethereum Layer 2 protocols. The firm plans to deploy more Ethereum to improve these yields potentially.
