ETHZilla has made a significant move in the aerospace sector, acquiring two CFM56-7B24 jet engines for a total of $12.2 million. This transaction was executed through its newly established subsidiary, ETHZilla Aerospace LLC, following the liquidation of $114.5 million worth of Ethereum (ETH) assets in recent months. The engines, which are currently leased to a major airline, represent a strategic pivot for the firm as it seeks to diversify its portfolio and invest in hard assets.
According to a filing with the U.S. Securities and Exchange Commission, the engines are managed under a monthly fee arrangement with Aero Engine Solutions. The deal includes a buy-sell option allowing either party to require the purchase or sale of the engines for $3 million each, contingent on meeting specific condition standards.
The aircraft engine leasing market is poised for growth, with projections indicating an expansion from $11.17 billion in 2025 to $15.56 billion by 2031, reflecting a compound annual growth rate of 5.68 percent. This growth is driven by airlines” needs to lease spare engines to ensure operational continuity while primary engines undergo maintenance or face failures. Major industry players include AerCap and Willis Lease Finance Corporation, which dominate the established market.
ETHZilla”s shares have experienced a steep decline of approximately 97 percent since reaching their peak in August 2024. The downturn in the company”s stock coincided with broader pressures in the cryptocurrency market. To manage its financial situation, ETHZilla sold $40 million in ETH during October to fund a stock buyback program, followed by another liquidation of $74.5 million in December aimed at debt redemption.
In line with its strategic vision, ETHZilla is advancing its tokenization efforts, which were outlined in communications to shareholders last December. The company is collaborating with Liquidityio, a regulated broker-dealer and SEC-registered alternative trading system, to tokenize various real-world assets, including aircraft engines, auto loans, and manufactured home loans. This initiative marks a departure from traditional cryptocurrency treasury management towards creating blockchain-based versions of conventional financial instruments.
ETHZilla has previously acquired a 15 percent stake in Zippy, a manufactured home loan provider, with plans to tokenize those loans as compliant and tradable instruments. Moreover, the company has secured equity in the auto finance platform Karus, which shares similar objectives for blockchain integration.
In a recent announcement on social media platform X, ETHZilla expressed its ambitions for the tokenization initiative, stating, “We”re building a scalable tokenization pipeline across asset classes with predictable cash flows and global investor demand.” The company plans to launch its first tokenized asset offerings in the first quarter of 2026.
The acquisition of the jet engines signifies ETHZilla”s strategic shift towards a more diversified asset management approach, leveraging its cryptocurrency holdings to invest in tangible, income-generating assets. This development could position the company favorably as the tokenization of real-world assets gains traction in the blockchain space.
