Strategic Shift: Crypto Fund Enters Aircraft Leasing Market
Recent SEC filings reveal that ETHZilla has entered a new phase of its business strategy through the acquisition of two CFM56-7B24 aircraft engines via its newly formed subsidiary. The $12.2 million investment marks a significant departure from its core crypto asset management operations.
Lease Structure and Future Options
The engines have already been leased to a major international airline. To ensure professional operations, the company has engaged Aero Engine Solutions for ongoing maintenance and management. The contract includes purchase option clauses that allow either party to require a $3 million per unit transaction upon lease completion if equipment remains in good condition.
Responding to Market Challenges
This strategic pivot comes amid prolonged market downturns affecting crypto-native financial institutions. Many firms that aggressively accumulated digital assets during market highs now face valuation gaps as stock prices trade well below their underlying crypto holdings' net asset value.
Tokenization Vision Takes Shape
Importantly, this asset reallocation may signal the company's preparation for its upcoming real-world asset (RWA) tokenization initiative. The firm recently announced plans to develop a scalable blockchain-based asset tokenization platform with predictable cash flows, targeting global investor demand.