ETHZilla Invests $100M into EtherFi to Enhance Ethereum Security and Yield Generation
ETHZilla Corporation, listed on Nasdaq and backed by prominent investor Peter Thiel, has announced a significant investment of US$100 million (AU$153.5 million) in EtherFi. This allocation will be directed towards a liquid restaking protocol designed to boost yield generation while simultaneously bolstering the security of the Ethereum network.
Executive Chairman McAndrew Rudisill hailed this initiative as a pivotal moment for ETHZilla’s transition into the realm of decentralised finance (DeFi), marking an essential step in its treasury management approach. This follows the company’s rebranding from 180 Life Sciences Corp. in July, which underscores its strategic shift towards DeFi while balancing yield opportunities, Ethereum’s security, and treasury liquidity.
"By deploying $100 million into liquid restaking, we’re reinforcing Ethereum’s security while unlocking incremental yield opportunities to enhance returns on our treasury holdings," highlighted Rudisill.
EtherFi Emerges as Market Leader
EtherFi has emerged as the frontrunner in the liquid restaking space, with a total locked value surpassing US$30 billion (AU$46 billion), outpacing competitors like Eigenpie. Mike Silagadze, CEO of EtherFi, sees ETHZilla’s investment as a strong indicator of institutional trust in decentralised solutions. “We are incredibly excited by ETHZilla’s pioneering approach to how treasury companies can strategically optimise their holdings,” he stated.
Strengthening Financials
Beyond its investment in EtherFi, ETHZilla boasts a robust financial position, holding 102,246 ETH, equating to roughly US$456 million (AU$700.6 million), alongside US$221 million (AU$339.1 million) in cash equivalents. In August, the firm expanded its Ethereum holdings by acquiring over 20,000 ETH at an average price of US$3,949 (AU$6,062).
Recently, ETHZilla fortified its capital base through a US$425 million (AU$652.4 million) private placement involving more than 60 institutional investors, including notable firms such as Electric Capital and Polychain Capital. Additionally, the company has restructured its capital by cancelling 1.3 million shares previously held by Elray Resources as part of a US$1 million (AU$1.5 million) settlement.
ETHZilla’s strategic maneuvers reflect its commitment to both strengthening its balance sheet and embracing innovative financial technologies to optimise its treasury operations in a rapidly evolving digital landscape.
