ETHZilla acquires jet engines: a strategic turn in the cryptocurrency treasury

ETHZilla, a company specializing in Ethereum treasury management, made an unexpected acquisition: two aerospace-grade jet engines valued at $12.2 million. The purchase was executed through a newly established subsidiary, ETHZilla Aerospace LLC, and is reflected in documents filed with the U.S. Securities and Exchange Commission (SEC). This move marks a dramatic shift in the company’s strategy, transitioning from accumulating crypto assets to diversification through real assets.

The acquired CFM56-7B24 engines are currently leased to a major airline. The company has engaged Aero Engine Solutions for their maintenance in exchange for monthly payments. The deal includes a purchase option allowing either party to buy or sell the equipment at a price of $3 million per unit at the end of the lease period, provided the equipment is in proper condition.

Challenges for Cryptocurrency Treasuries Amid Market Volatility

This unusual investment maneuver occurs against the backdrop of significant pressure on the crypto treasuries of public companies. Over the past few months, many organizations that actively accumulated tokens last year have faced a substantial discount between their stock market value and net asset value (NAV) on their balance sheets. This situation has severely limited their ability to raise new capital.

ETHZilla personally sold $40 million worth of Ethereum in October 2025 to fund a share buyback program, and then unloaded another $74.5 million in December of the same year, directing funds toward debt reduction. During this period, the company’s stock price fell approximately 97% from its August peak.

Aerospace Business as a Diversification Tool

However, purchasing jet engines is not as exotic as it might seem at first glance. For a company with its own investment portfolio, acquiring aviation equipment and subsequently leasing it to aircraft operators is a common practice in the aerospace sector. Airlines regularly lease spare jet engines to ensure flight continuity when primary equipment fails.

Major industry players such as AerCap, Willis Lease Finance Corporation, and SMBC Aero Engine Lease have long operated in this segment and demonstrate steady profitability. Additionally, the aerospace industry is currently experiencing a severe shortage of large jet engines. According to the International Air Transport Association (IATA), member airlines are expected to spend around $2.6 billion on additional spare equipment in 2025.

According to TechSci Research forecasts, the global aircraft engine leasing market shows steady growth: from $11.17 billion in 2025, it is expected to increase to $15.56 billion by 2031, with an average annual growth rate of 5.68%. This indicates an attractive investment direction.

Tokenization of Real Assets as a New Development Vector

The purchase of jet engines gains even more significance in the context of ETHZilla’s recently announced strategic transformation. In its December letter to shareholders, the company revealed ambitious plans to introduce tokenized real assets (RWA) on the blockchain.

To implement this plan, ETHZilla partnered with Liquidity.io, a regulated broker-dealer and alternative trading system (ATS) registered with the SEC. This will provide the company with the necessary regulatory framework to issue digital instruments compliant with regulations.

Preliminarily, the company has already begun strengthening its position in relevant segments: it acquired a 15% stake in Zippy, a lender specializing in mortgages on factory-built homes, with the prospect of tokenizing these loans later. Similarly, ETHZilla invested in the auto loan platform Karus, planning to transfer these loan products onto the blockchain.

“We are creating a scalable pipeline for tokenizing various asset classes with predictable cash flows and global investor demand,” the company stated in an official announcement. ETHZilla plans to launch its first offerings of tokenized assets in the first quarter of 2026, demonstrating serious intent to develop this area.

Thus, the investment in jet engines aligns with ETHZilla’s broader strategy of building a portfolio of tangible assets with sustainable cash flows, which can later be converted into blockchain-native instruments. This approach allows the company to adapt to current market cycle challenges while positioning itself in the growing market of tokenized real assets.