TLDR:
- ETHZilla purchased two CFM56-7B24 engines for $12.2M through newly formed aerospace subsidiary ETHZilla Aerospace LLC.
- The company sold $114.5M worth of ETH in recent months while shares dropped 97% from their August 2024 peak levels.
- Aircraft engine leasing market projected to grow from $11.17B in 2025 to $15.56B by 2031 at 5.68% annual growth rate.
- First tokenized asset offerings expected Q1 2026 through partnership with regulated broker-dealer Liquidityio platform.
ETHZilla has acquired two CFM56-7B24 aircraft engines for $12.2 million through a newly established aerospace subsidiary.
The Ethereum treasury company made the purchase after selling $114.5 million worth of ETH in recent months. The engines are currently under lease to a major airline.
This move aligns with the firm’s strategic shift toward tokenizing real-world assets on blockchain networks.
Strategic Acquisition Through Aerospace Subsidiary
The company completed the transaction through ETHZilla Aerospace LLC, according to a Friday filing with the U.S. Securities and Exchange Commission.
The two engines are managed by Aero Engine Solutions under a monthly fee arrangement. The deal includes a buy-sell option agreement upon lease expiration.
Either party can require the purchase or sale of engines at $3 million each if proper condition standards are met.
The aircraft engine leasing market represents a growing sector within the aerospace industry. Airlines lease spare engines to maintain operational continuity when primary engines require maintenance or fail.
Major players like AerCap and Willis Lease Finance Corporation operate in this established market. The International Air Transport Association projects its airline members will spend approximately $2.6 billion on spare engine leases in 2025.
Market research from TechSci Research indicates strong growth potential for this sector. The global aircraft engine leasing market is expected to expand from $11.17 billion in 2025 to $15.56 billion by 2031.
This represents a compound annual growth rate of 5.68 percent. The industry currently faces a supply squeeze for large engines, creating favorable conditions for lessors.
ETHZilla’s shares have declined roughly 97 percent from their August peak amid broader crypto market pressures. The company sold $40 million in ETH during October to fund a stock buyback program.
An additional $74.5 million in Ethereum was liquidated in December for debt redemption purposes. Digital asset treasury companies have faced challenges as many trade below the net asset value of their cryptocurrency holdings.
Tokenization Pipeline Development
The engine purchase appears connected to ETHZilla’s broader tokenization strategy outlined in December shareholder communications.
The company is partnering with Liquidityio, a regulated broker-dealer and SEC-registered alternative trading system.
The collaboration aims to tokenize various real-world assets, including aircraft engines, auto loans, and manufactured home loans.
ETHZilla previously acquired a 15 percent stake in Zippy, a manufactured home loan provider. The investment includes plans to tokenize those loans as compliant tradable instruments. The company also obtained equity in auto finance platform Karus with similar blockchain integration objectives.
In a post on X, the firm outlined its vision for the tokenization initiative. “We’re building a scalable tokenization pipeline across asset classes with predictable cash flows and global investor demand,” ETHZilla stated. The first tokenized asset offerings are scheduled for launch during the first quarter of 2026.
The strategy represents a pivot from pure cryptocurrency treasury management to blockchain-based asset tokenization.
ETHZilla aims to create onchain versions of traditional financial instruments with established cash flows. The regulated partnership structure addresses compliance requirements for securities offerings.