ETHZilla Launches Eurus Aero Token I for Aircraft Engine Investment
ETHZilla announced the launch by its newly formed wholly owned special purpose subsidiary ETHZilla Aerospace of the Eurus Aero Token I, a first-of-its-kind tokenized real-world asset instrument, enabling investors to gain exposure to aircraft engines on lease with a US air carrier through tradable digital tokens representing contractual revenue rights. The Eurus Aero Token I is being offered by ETHZilla Aerospace exclusively through the Liquidity.io ecosystem. The token is designed to provide accredited investors with direct exposure to contracted, asset-backed cash flows generated by leased commercial jet engines. The token is backed by two CFM56 commercial jet engines acquired by ETHZilla for a total of approximately $12.2M. The tokens will be offered for $100 each, with a minimum purchase of 10 tokens, and have a target rate return of approximately 11% based on holding for the full term of the lease. The engines are leased to a leading U.S. air carrier, by ETHZilla Aerospace, generating monthly cash receipts that include base rent and utilization-based payments. These cash flows will be collected and then distributed on-chain through an ERC-20 token structure, with monthly distributions made to token holders in cash or immediately available funds, to the extent that funds are available for distribution. The leases extend into 2028. Each lease includes a $3M put/call right. ETHZilla expects to launch Ethereum L2 tokens for additional asset classes in the near future, including manufactured home loans and car loans.
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- Investment Lesson: Peter Thiel and Founders Fund acquired a 7.5% stake in ETHZilla at $107 in August 2025, but the stock plummeted 97% within months, turning a high-profile Ethereum investment into a cautionary tale.
- Capital Mismanagement: ETHZilla launched its Ethereum strategy after raising $565 million in August 2025, holding over 100,000 ETH at its peak, but was forced to sell approximately $40 million in ETH to fund stock buybacks after the market crash, highlighting the fragility of its business model.
- Strategic Pivot: ETHZilla is shifting towards real-world asset tokenization, having acquired $4.7 million in manufactured and modular home loans and two CFM56-7B24 aircraft engines for tokenization, attempting to move away from its failed Ethereum accumulation strategy.
- Current Holdings Update: ETHZilla now holds 69,802 ETH valued at approximately $139 million, significantly trailing behind BitMine Immersion Technologies, which holds 4,371,497 ETH, indicating its competitive disadvantage in the Ethereum market.
- Complete Exit: Peter Thiel and his Founders Fund have fully exited their position in ETHZilla Corporation (NASDAQ:ETHZ), with the latest Schedule 13G filing indicating a 0.0% stake as of December 31, marking a total withdrawal from the Ethereum treasury firm.
- Shareholding Shift: Earlier filings from August 11 showed Thiel held 11,592,241 shares, representing 7.5% of the class, and this complete liquidation signals a significant loss of confidence in ETHZ, which could negatively impact market perception of the company.
- Increased Short Pressure: Short interest in ETHZ rose from 2.71 million to 2.85 million shares during the latest reporting period, representing 15.08% of the company's publicly available float, indicating a more pessimistic market outlook and increasing the risk of stock price volatility.
- Price Dynamics: ETHZilla shares fell 0.85% to $3.48 on Wednesday, nearing a 52-week low of $2.99, reflecting market concerns about its future prospects, particularly in light of the major shareholder's exit.
- Complete Exit: Peter Thiel's Founders Fund has fully divested from ETHZilla, previously holding a 7.5% stake, indicating a significant reduction in institutional confidence in Ethereum amid mounting pressures in the crypto market.
- Market Turmoil: Ethereum's price plummeted by 28.4% in Q4 2025, marking its first negative quarter since 2022, which has led to substantial asset depreciation for digital asset treasury firms, adversely affecting their stock performance.
- Asset Liquidation: In response to deteriorating market conditions, ETHZilla quickly reduced its Ethereum holdings, offloading approximately $40 million worth of Ether for stock buybacks in late October and an additional $74.5 million in December to repay debt, now holding 69,802 ETH, a significant drop from its peak.
- Strategic Shift: ETHZilla is undergoing a strategic transformation, with its wholly-owned subsidiary, ETHZilla Aerospace, seeking to provide tokenized equity exposure in leased jet engines, indicating the company's pursuit of new growth avenues under market pressure.
- Stake Exit: Peter Thiel's complete exit from ETHZilla by the end of 2025 may lead to decreased market confidence in the company, potentially impacting its stock performance.
- Stock Volatility: ETHZilla shares fell 3% in after-hours trading and are down 28% year-to-date, reflecting investor concerns about the company's future, which could affect its financing capabilities and market competitiveness.
- New Product Launch: ETHZilla's wholly-owned subsidiary, ETHZilla Aerospace, launched the Eurus Aero Token I, a tokenized asset allowing investors to gain exposure to leased aircraft engines via tradable digital tokens representing revenue rights, aimed at attracting new investors and expanding its market.
- Market Reaction: While the new product may provide ETHZilla with new revenue streams, the ongoing stock decline and executive stake exit could undermine investor confidence, impacting the company's long-term strategic development.
- First Aviation Asset Token: ETHZilla, through its wholly-owned subsidiary ETHZilla Aerospace, has launched the Eurus AeroTokenI, marking the first tokenization of aircraft engines, allowing investors to gain cash flow rights linked to engines leased to a major U.S. airline, representing a significant milestone in ETHZilla's real-world asset tokenization efforts.
- Expected Investment Returns: Priced at $100 per token with a minimum purchase of 10 tokens, the Eurus AeroTokenI is projected to yield approximately 11% over its holding period, providing investors with a transparent, income-oriented alternative aimed at attracting accredited investors interested in aviation assets.
- Blockchain Technology Utilization: The tokenization employs Layer 2 protocols on the Ethereum network to ensure on-chain verification of token holders and automated distributions, modernizing access to real-world income-producing assets and potentially transforming traditional aerospace leasing structures.
- Market Expansion Potential: ETHZilla plans to launch Ethereum L2 tokens for additional asset classes in the near future, including manufactured home loans and car loans, further solidifying its leadership in the tokenized finance sector and expanding global investment opportunities.

- Securities Fraud Investigation: Pomerantz LLP is investigating whether ETHZilla and its executives engaged in securities fraud or other unlawful practices, potentially leading to significant investor losses and damaging the company's reputation and stock price.
- Fundraising Disclosure: On December 19, 2025, ETHZilla disclosed the sale of approximately 24,291 Ether (ETH) for $74.5 million, intended to redeem outstanding senior secured convertible notes, indicating urgency in its financial management.
- Stock Price Reaction: Following the fundraising announcement, ETHZilla's stock price fell by $0.60, or 8.70%, to close at $6.30 per share on December 22, 2025, reflecting market concerns about the company's future prospects.
- Future Business Outlook: The company stated that it aims to drive revenue and cash flow growth through its real-world asset (RWA) tokenization business, despite facing legal scrutiny and a lack of market confidence at present.









