TL;DR:
- ETHZilla acquired 15% of Zippy for $21.1 million (cash and stock) to tokenize manufactured home loans.
- The acquisition grants ETHZilla 36-month exclusivity for Zippy’s blockchain infrastructure and a board seat.
- The move occurs amidst a massive stock drop for Ether treasury companies due to token volatility.
The former biotech company ETHZilla (ETHZ) has just acquired a 15% stake in Zippy, redoubling its efforts in the Real-World Asset (RWA) markets. The deal, valued at $5 million in cash and $16.1 million in stock, was announced this Wednesday and is primarily aimed at boosting On-chain Mortgage Loan Tokenization for manufactured homes.
The acquisition of Zippy, a US-based digital housing lender that also uses a digital platform and AI-powered systems to originate loans, comes just one week after ETHZilla acquired a 20% stake in Karus, an automotive finance startup, reinforcing its rapid and ambitious diversification.
Structural Risks and Ether Treasury Volatility
As part of the transaction, ETHZilla will not only gain a seat on Zippy’s board of directors but will also secure a 36-month exclusivity period, requiring Zippy to use ETHZilla’s platforms for all its blockchain infrastructure and digital asset issuance.
However, this strategic move unfolds against a backdrop of strong headwinds for companies that adopted Ether as a treasury asset. ETHZilla’s stock has dropped approximately 91% from its August peak, currently trading around $10.
This trend is replicated in other companies with Ether treasury strategies, such as SharpLink Gaming and Bitmine Immersion, whose stock values have plummeted as the price of Ether has fallen from its historical highs.
Analysts like Kadan Stadelmann of Komodo Platform warn that ETH-based treasuries face significant structural risks, where a market correction could force liquidations and amplify selling pressure on the token itself.
The action plan will now focus on integrating Zippy’s loan origination systems and AI with ETHZilla’s On-chain Mortgage Loan Tokenization stack. This will enable the distribution of manufactured home loans on the blockchain, including forward-flow sales to institutional investors.
Market participants should closely monitor whether the success of this pivot toward On-chain Mortgage Loan Tokenization can generate stable revenue streams and value for ETHZilla’s shares, managing to stabilize the company against the high volatility of Ether’s price.
