ETHZilla Launches Tokenized Jet Engine Investment on Arbitrum

Through its wholly owned subsidiary ETHZilla Aerospace, ETHZilla has deployed the Eurus Aero Token I on the Arbitrum layer-2 network. The token offers fractional equity in two CFM56 commercial jet engines the firm acquired for approximately $12.2 million, which are leased to an unnamed but described “largest and most profitable U.S. airlines.” ETHZilla Chairman and CEO McAndrew Rudisill stated the offering serves as “a strong use case in applying blockchain infrastructure to aviation assets with contracted cash flows and global investment demand,” aiming to modernize fractional ownership in markets traditionally dominated by institutional credit and private equity.

The firm is offering 30,000 tokens at $100 each, with a minimum investment of 10 tokens or $1,000, exclusively to accredited investors via the Liquidity.io marketplace. The targeted return rate for holders throughout the full lease term, which extends into 2028, is approximately 11%, though a disclaimer notes actual returns may “differ materially.” Each month, cash flows generated by the leased engines will be distributed to token holders on-chain. According to the firm’s statement, “Each token is secured by a collateral package consisting of aircraft engines, related lease receivables, reserves, and insurance proceeds,” with ETHZilla Aerospace serving as the issuer under ETHZilla’s management.

At the time of the announcement, data from the Arbitrum block explorer Arbiscan indicated no orders or token transfers had yet been made. The firm’s representative confirmed it cannot disclose the airline lessee due to the terms of the lease agreement.

This tokenization initiative arrives as ETHZilla actively searches for answers to improve shareholder value. Shares in ETHZilla (ETHZ) rose around 5% on the day of the announcement, recently trading at $3.40, yet remain down 31% over the past month. The firm’s shares had skyrocketed more than 200% last August after it was revealed tech billionaire Peter Thiel purchased a 7.5% stake. However, as excitement around digital asset treasuries has faded, the firm has taken defensive measures.

In late August, amid falling share prices, ETHZilla unveiled a $250 million share buyback program. It later sold $40 million of its Ethereum holdings specifically to buy back shares after its mNAV (multiple to net-asset-value) dropped below 1—indicating the market was valuing the firm at less than the sum of its asset holdings. Ethereum (ETH) itself is down nearly 40% over the last 30 days, recently trading around $1,919, compounding the challenges for treasury firms.

ETHZilla’s latest move into aviation finance is expected to be the first of several expansions into real-world assets. The firm is looking to offer tokenized access to manufactured home loans and car loans via existing partnerships, signaling a broader strategic pivot toward blockchain-based fractional ownership of income-generating physical assets.

ETHZilla is not alone among publicly traded Ethereum treasury firms in seeking new avenues to drive returns. The landscape shows divergent strategies as the sector matures beyond simply holding ETH. BitMine Immersion Technologies, noted as the largest publicly traded Ethereum firm, made a $200 million investment in the firm of YouTube star MrBeast in a quest for “outsized returns,” venturing into consumer media and branding.

Meanwhile, SharpLink Gaming, identified as the second-largest publicly traded Ethereum treasury firm, has committed to a more disciplined approach. It aims to acquire ETH only when such purchases are accretive to shareholders and has chosen to stay away from investments that detract from its core mission, presenting a contrast to the aggressive diversification seen elsewhere.

ETHZilla’s jet engine tokenization on Arbitrum thus positions it at the intersection of two evolving trends: the search for yield and shareholder value by crypto-native public companies, and the growing narrative of real-world asset tokenization as a foundational use case for blockchain infrastructure, particularly on Ethereum and its scaling networks like Arbitrum.