PALM BEACH, Fla., Nov. 14, 2025 /PRNewswire/ -- ETHZilla Corporation (NASDAQ:ETHZ) ("ETHZilla" or the "Company"), a technology company connecting traditional finance and decentralized finance (DeFi), today announced financial results for the third quarter ended September 30, 2025.
Management Commentary
"This quarter marked a transformative leap for ETHZilla, establishing us as a technology leader in DeFi and positioning us for real-world asset (RWA) tokenization," said McAndrew Rudisill, chairman and chief executive officer. "With the aggressive deployment of our substantial Ethereum holdings into leading restaking protocols, we're generating robust, compounding yields while contributing to network security. Our strategic partnership with Liquidity.io, including a 15% equity stake in its parent company Satschel, Inc., lays the foundation to begin tokenizing high-value, real-world and financial assets on Ethereum Layer 2 (L2) networks, enhancing liquidity, reducing friction, and broadening access for all investors. While the tokenization of global assets is still in its early stages, we believe ETHZilla is well positioned to lead this charge and be a first mover in this space as we begin to tokenize assets in the coming weeks. We believe ETHZilla's unique business model enables it to capture the full upside of ETH appreciation alongside sustainable on-chain cash flows, recurring cash flow from tokenization, and lead the development of what is anticipated to be a multi-trillion-dollar tokenized asset economy."
Business Highlights
Secured $931 million in Institutional Capital: Raised approximately $931 million through multiple high-conviction financings, including a $425 million PIPE on August 4, 2025; a $156 million convertible note on August 11, 2025; and a $360 million convertible note on September 23, 2025. This robust backing from top-tier institutions is a testament to ETHZilla's strategic transformation and emerging leadership in tokenized real-world asset infrastructure.
Strategic Restaking Deployment: In partnership with Electric Capital generated approximately 7.5% yield on deployed ETH in the third quarter. Partnered with leading protocols Ether.fi and Puffer Finance to deploy approximately $257 million into liquid restaking, enhancing yield on our Ethereum treasury while expanding our footprint across DeFi. This move enhances capital efficiency, generates high-margin on-chain income, and captures the full upside of ETH appreciation.
Landmark Partnership with Liquidity.io: Announced a strategic alliance with Liquidity.io, including a $15 million investment and a 15% equity stake in its parent company Satschel, Inc. We believe this partnership establishes ETHZilla as the premier platform for tokenizing high-value RWAs into fully compliant, liquid, on-chain instruments with seamless primary and secondary market access. Exclusive Ethereum L2 listing rights further cement the Company's leadership in blockchain-powered financial innovation.
Share Repurchase Program: Repurchased 2,099,472 shares for $46.3 million inclusive of fees through November 13, 2025, under our board-approved $250 million authorization. These NAV-accretive repurchases reflect management's confidence in ETHZilla's intrinsic value and an unwavering commitment to delivering superior returns through prudent, opportunistic capital allocation.
Streamlined Legacy Portfolio for Focus & Growth: Successfully resolved all outstanding litigation against the legacy company, 180 Life Sciences, and divested the legacy biotechnology assets. The Company continues to retain the previously acquired iGaming assets until the physical assets associated with the tokenization cash flow have been initiated. We believe these actions further sharpen ETHZilla's focus on high-growth digital asset tokenization and position the Company as a pure-play leader in the future of decentralized finance.
Strengthened Executive & Board Leadership: Appointed McAndrew Rudisill as Chairman and CEO; John Saunders as CFO; John Kristoff as SVP of Corporate Communications and Investor Relations; and Max van der Griend as VP of Corporate Finance to help accelerate the Company's tokenized asset platform and growth strategy. Welcomed Jason New, Vice Chairman of Investment Banking at Lazard, to the Board—adding proven capital markets expertise to advance ETHZilla's mission of connecting institutional finance with decentralized finance.
Near-Term Outlook
The Company expects revenue-generating RWAs on chain in the coming weeks.
The Company anticipates positive adjusted EBITDA in the fourth quarter.
L2 protocol yield expected to range between 3.5% and 4.5%, assuming no new ETH deployment and no further liquidity provisioning. If new ETH were to be deployed, the yield range would trend higher.
The Company plans to continue opportunistically repurchasing shares below NAV, using the remaining proceeds of its recent ETH sale when accretive, under its existing board-authorized $250 million stock repurchase program.
Third Quarter GAAP 2025 Financial Highlights
(in millions, except per share amounts)
For the Quarter Ended Sept. 30, 2025
Revenue
$4.1
Gross Profit
$4.1
CapEx
--
Cash and Cash Equivalents
$559
Revenue of $4.1 million, driven by ETH staking and incentive rewards earned across DeFi deployments from mid-August 2025.
Net loss from Continuing Operations of $208.7 million, primarily attributable to one-time non-cash items related to the July 2025 transaction expenses and write downs. Of this amount, approximately $208.4 million is associated with non-cash and transaction related fees.
Adjusted EBITDA of $8.5 million*
* Schedules reconciling the Company's generally accepted accounting principles in the United States ("GAAP") and non-GAAP financial results, including Adjusted EBITDA, are included later in this release (see also "Non-GAAP Financial Measures", below).
Third Quarter Summary
Third Quarter 2025 ETH Holdings and Key Business Metrics
(dollar figures in millions)
As of September 30, 2025
ETH Holdings
102,273
ETH Value
$424
Treasury Deployment1
70 %
NAV
$445
All figures as of close on September 30, 2025
(1)
Represents the percentage of ETH deployed in Protocol 1, 2 and 3 staking/restaking. Earning rewards by validating and securing one or more blockchain protocols. Past performance is not indicative of future performance. Staking and Liquid Staking yield is subject to fluctuation as result of numerous factors, many of which are outside of our control, including changes in network activity, the total amount of ETH staked, transaction fees, and protocol adjustments
Conference Call Information
The company will host a live webcast at 10:30 a.m. ET today to discuss its third quarter 2025 results.
To register and listen to the live webcast, please use the link found here. A replay of the webcast will be available for approximately one year in the investor's section of the Company's website at ETHZilla.com.
About ETHZilla
ETHZilla Corporation (NASDAQ:ETHZ) is a technology company in the decentralized finance (DeFi) industry. ETHZilla seeks to connect financial institutions, businesses and organizations worldwide by enabling secure, accessible blockchain transactions through Ethereum Network protocol implementations. It generates recurring revenues through various DeFi protocols that improve Ethereum network integrity and security. ETHZilla believes it has the unique capability to bring traditional assets on-chain via tokenization. Through its proprietary protocol implementations, ETHZilla facilitates DeFi transactions and asset digitization across multiple Layer 2 Ethereum networks. ETHZilla is working to offer tokenization solutions, DeFi protocol integration, blockchain analytics, traditional-to-digital asset conversion gateways, and other decentralized finance services. To learn more, visit ethzilla.com or follow us on X @ETHZilla_ETHZ or LinkedIn.
Income Statement
ETHZILLA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
For the three months endedSeptember 30,
For the nine months endedSeptember 30,
2025
2024
2025
2024
Revenues
$ 4,110
$ -
$ 4,110
$ -
Total cost of revenues
-
-
-
-
Gross income
4,110
-
4,110
-
Selling, general and administrative expense
224,605
596
227,954
3,472
Operating income (loss)
(220,494)
(596)
(223,844)
(3,472)
Interest expense
(320)
(10.552)
(320)
(29)
Other income
12,143
74
12,156
1,842
Income (loss) before income taxes
(208,671)
(532)
(212,008)
(1,659)
Income tax benefit
-
Net Income (loss) from Continuing Operations
(208,671)
(532)
(212,008)
(1,659)
Net Income (loss) from Discontinued Operations
(8,071)
(304)
(8,830)
(236)
Net Income (loss)
(216,742)
