Ethereum Treasury Acquires $12 Million Jet Engines After ETH Collapse

Ethereum-focused treasury firm ETHZilla has diversified its balance sheet after months of heavy cryptocurrency sales, adding aviation assets to its portfolio. According to regulatory filings, the company has acquired jet engines through a new subsidiary, which is a significant move as digital asset treasuries re-evaluate strategies in the face of market volatility.

As per a filing with the U.S. Securities and Exchange Commission on Friday, ETHZilla acquired two CFM56-7B24 aircraft engines for $12.2 million through ETHZilla Aerospace LLC. The engines are leased to a major airline, and Aero Engine Solutions manages them for a fixed monthly fee as per commercial terms.

The deal came after large liquidations of Ethereum in the past few months. According to the report, ETHZilla has sold at least $114.5 million in Ethereum, including sales used to finance share repurchases and debt redemptions.

However, the company’s stock price has fallen by nearly 97% from its peak levels in August, despite adjustments to its balance sheet.

Aviation Assets and Industry Context

While unconventional for a crypto-linked firm, aircraft engine leasing is a well-established part of the aviation finance industry. Air carriers keep spare engines on hand to keep disruptions to their operations to a minimum, and this is where lessors with the flexibility to help them out come in.

Companies such as AerCap, Willis Lease Finance Corporation, and SMBC Aero Engine Lease are already active in this area internationally.

Market trends have further fueled the demand for leased engines. According to the International Air Transport Association, the airline industry may spend as much as $2.6 billion in 2025 on spare engines because of supply chain constraints.

Market research company TechSci forecasts that the aircraft engine leasing market will grow steadily until 2031, driven by trends in the recovery of the commercial aviation industry.

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Ethereum Treasury Pressure Drives ETHZilla Diversification

ETHZilla’s diversification strategy comes at a time when the digital asset treasuries are under pressure due to the fall in the value of tokens. Currently, most of the publicly listed token holders are trading below their net asset value.

ETHZilla has previously sold ETH worth $40 million for buybacks and $74.5 million for the retirement of debt obligations in difficult capital market conditions that have been observed globally.

However, ETHZilla is moving forward with plans to tokenize real-world assets. The company has partnered with a regulated broker-dealer firm called Liquidity.io to issue compliant tokens on-chain, which will be collateralized by aircraft engines, auto loans, and home loans. The first tokenized products are set to be launched in the first quarter of 2026.

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