ETHZ News & Events

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.

ETHZilla has acquired a portfolio of manufactured and modular home loans from Zippy Manufactured Home Credit Fund I. ETHZilla plans to tokenize the loan portfolio into a cash-flow-generating manufactured home loan token, leveraging Ethereum Layer 2 infrastructure to support on-chain asset tracking and automated cash-flow distribution. The company intends to launch the token through the Liquidity.io ecosystem in late February/early March. The acquisition of the manufactured and modular home loan portfolio from Zippy follows ETHZilla's recent purchase of two CFM56-7B24 aircraft engines on lease with a major air carrier, which it also intends to tokenize and make available on Liquidity.io in the near future. Through its newly formed wholly owned subsidiary, ETHZilla Modular Mortgage LLC, the company acquired 95 manufactured and modular home loans, together with the first-lien mortgages securing the loans, for a total purchase price of approximately $4.7M. The loans will continue to be serviced by Zippy Loans, LLC, a wholly owned subsidiary of Zippy. The acquired loan portfolio is expected to generate an annualized yield of approximately 10.36%.

ETHZilla files to sell 2.73M shares of common stock for holders

ETHZilla announced that it intends to redeem in full its outstanding $516M in aggregate principal amount of convertible notes due 2028 on or by December 30. The redemption will be at a purchase price of 117% of the outstanding aggregate principal amount, plus accrued interest. The company said it is strengthening its balance sheet and streamlining its capital structure as it seeks to generate revenue from recent strategic initiatives.