ETHZilla Acquires $12.2M Jet Engines in RWA Play
Ethereum-focused treasury firm ETHZilla has purchased two aircraft engines for $12.2 million, marking a decisive pivot from holding digital assets to acquiring tangible, income-generating hardware. According to a January 24 regulatory filing, the company's new subsidiary, ETHZilla Aerospace LLC, acquired two CFM56-7B24 engines that are currently leased to a major airline, providing an immediate revenue stream.
The deal positions ETHZilla within the growing aerospace leasing sector, which is forecast to expand from $11.17 billion in 2025 to $15.56 billion by 2031. The company has contracted Aero Engine Solutions to manage the assets, and the agreement includes a buy-sell option for $3 million per engine upon lease expiration, providing a structured exit path.
Pivot Follows 97% Stock Drop and $114.5M ETH Sale
This strategic shift into physical assets is a direct response to severe financial distress. ETHZilla's stock has collapsed approximately 97% since its August peak, effectively cutting off its ability to raise new capital and putting immense pressure on its treasury.
To navigate the downturn, the firm liquidated a substantial part of its crypto holdings in late 2025. It sold $40 million worth of ETH in October to fund a stock buyback program and offloaded another $74.5 million in December to redeem outstanding debt. These sales, totaling $114.5 million, were necessary to stabilize the company's finances and set the stage for its new RWA-focused business model.
Tokenization Pipeline Targets Q1 2026 Launch
The acquisition of the jet engines is the first major step in ETHZilla's plan to tokenize high-value real-world assets. The company has been building a supporting ecosystem, including a partnership with Liquidity.io, a regulated broker-dealer and alternative trading system, to ensure its tokenized offerings are compliant.
This initiative extends beyond aviation. ETHZilla previously took a 15% stake in manufactured home lender Zippy and acquired an interest in auto finance platform Karus, with stated plans to bring their loan portfolios on-chain. The company confirmed its ambitions in a recent statement, saying, "We're building a scalable tokenization pipeline across asset classes with predictable cash flows." ETHZilla expects to launch its first tokenized asset offerings in the first quarter of 2026.
