ETHZilla reported $4.1 million in Q3 revenue from Ethereum staking and DeFi rewards

ETHZilla reported its third‑quarter results after the bell last night, and the company said in its report that it is pushing deeper into crypto, restaking, and real‑world asset tokenization.

CEO McAndrew Rudisill, who is also chairman, told investors that “this quarter marked a transformative leap for ETHZilla, establishing us as a technology leader in DeFi and positioning us for real‑world asset tokenization,” and he said the company placed its Ethereum holdings into major restaking platforms to produce compounding yield and support network security.

McAndrew said the company’s new partnership with Liquidity.io, backed by a 15% stake in its parent Satschel, gives ETHZilla the setup it needs to begin tokenizing real‑world and financial assets on Ethereum Layer 2.

He said the company wants to start putting these assets on‑chain in the coming weeks and wants to build a position inside what he described as a future multi‑trillion‑dollar market.

ETHZilla raises new money and expands restaking operations

ETHZilla said it secured $931 million in new institutional capital across three financings during August and September.

The company said that the first deal was a $425 million PIPE on August 4, followed by a $156 million convertible note on August 11, and then a $360 million convertible note on September 23.

ETHZilla told investors that this capital came from firms that support its pivot into crypto tokenization and its attempt to build infrastructure for real‑world assets.

Management said ETHZilla partnered with Electric Capital to earn about 7.5% yield on its deployed Ethereum during the quarter. The company also deployed $257 million into Ether.fi and Puffer Finance to expand its liquid restaking footprint.

ETHZilla said this approach helped the firm increase income while keeping exposure to Ethereum’s upside. McAndrew said the strategy creates high‑margin cash flow directly on‑chain and improves the company’s capital efficiency.

ETHZilla also detailed the terms of its Liquidity.io partnership, which includes a $15 million investment and the 15% equity stake in Satschel. The company said this deal gives it exclusive Ethereum L2 listing rights for tokenized assets.

Management said this structure will allow it to issue assets that are fully compliant while offering both primary and secondary market access on the same network.

ETHZilla reshapes its portfolio, expands leadership, and reports Q3 figures

ETHZilla said it repurchased 2,099,472 shares for $46.3 million, including fees, under its board‑authorized $250 million share buyback plan.

The company said it plans to continue to repurchase shares below NAV with the remaining funds from its recent Ethereum sale when it believes the move is accretive.

The company also said it resolved all litigation tied to its old identity as 180 Life Sciences and sold off its legacy biotech assets.

ETHZilla will continue to hold its previously acquired iGaming assets until its tokenization‑related cash flow begins. Management said this change gives the firm a cleaner structure as it grows its crypto tokenization platform.

The leadership team changed as well. McAndrew became chairman and CEO, John Saunders became CFO, John Kristoff became SVP of corporate communications and investor relations, and Max van der Griend became VP of corporate finance.

ETHZilla also added Jason New, vice chairman of investment banking at Lazard, to its board.

The near‑term outlook includes plans to bring revenue‑producing tokenized assets on‑chain within weeks and expectations for positive adjusted EBITDA in the fourth quarter.

ETHZilla said yield from L2 protocols should land between 3.5% and 4.5% if no new Ethereum is deployed.

If more Ethereum is used, ETHZilla said yields could improve. The company also plans to continue buying shares below NAV under its same $250 million authorization.

For the quarter, ETHZilla reported $4.1 million in revenue, all from Ethereum staking and incentive rewards earned since mid‑August. Gross profit matched revenue.

The company reported zero CapEx and said it ended the period with $559 million in cash and equivalents.

ETHZilla posted a $208.7 million net loss, almost all of it tied to one‑time non‑cash charges from July’s transaction expenses and write‑downs, and about $208.4 million of that amount came from those fees. Adjusted EBITDA was $8.5 million.

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