ETHZilla buys $12.2M aircraft engines as it pivots to RWA tokenization
ETHZilla, an Ethereum-focused treasury company, purchased two CFM56-7B24 commercial aircraft engines for $12.2 million in cash through a new unit, ETHZilla Aerospace LLC. The engines include existing lease agreements with a major airline, producing immediate rental income. The acquisition follows ETHZilla’s strategic pivot from holding large Ether reserves toward building revenue-generating real-world asset (RWA) businesses and tokenization pipelines — a direction announced by CEO McAndrew Rudisill. ETHZilla previously sold Ether to fund operations and still holds roughly 69,802 ETH (~$198.5M), but its stock (ETHZ) has plunged from August highs (~95% drop to $5.24), reflecting investor skepticism and broader market weakness. The deal includes purchase credits for prior deposits, an economic closing date through Sept. 30, 2025, and buyback options priced at $3M per engine after lease expiry. ETHZilla has partnered with regulated broker-dealer Liquidityio to tokenize RWAs, targeting Q1 2026 rollouts starting with aircraft engines, auto loans and home loans. Aero Engine Solutions (Avean) will service the engines under a management agreement and collect monthly fees. For crypto traders: the ETH sales by an Ether treasury holder represent increased ETH supply sold from a notable holder (potential downward pressure); the pivot to RWA tokenization introduces a new institutional narrative that could attract institutional flows if executed; and the sharp collapse in company equity signals execution risk and investor doubt. Monitor ETH price reaction to further treasury sales, updates on tokenization launches, and any secondary selling by other treasury holders — critical near-term resistance around $3,000 for ETH was noted by market commentators.
Bearish
Short-term: Bearish. ETHZilla’s sale of ETH to fund the aircraft purchase increases immediate sell pressure from a known treasury holder — more ETH on the market is typically negative for price, especially given the company’s prior and ongoing liquidations. The company’s stock collapse (~95%) signals investor distrust and execution risk, which can amplify negative sentiment around ETH-linked entities and cause short-term volatility. Key technical resistance near $3,000 (noted by market commentators) may cap any quick rebounds. Medium/long-term: Neutral-to-cautiously negative unless tokenization execution succeeds. If ETHZilla and partners successfully tokenize RWA and attract institutional capital, that could create a constructive narrative for ETH as on-chain settlement and tokenization rails gain traction — potentially supportive over the long run. However, execution risk, regulatory uncertainty around RWA tokens, and the likelihood of further treasury sales make sustained bullish outcomes uncertain. Traders should watch for (1) additional ETH sales from ETHZilla or other treasuries, (2) concrete tokenization product launches and regulatory clarity, and (3) ETH price behavior around the $3,000 resistance to gauge near-term directional bias.