Ethzilla Corp. (NASDAQ: ETHZ) announced a definitive agreement to acquire a 15% fully diluted ownership stake in Zippy, Inc., a digital lending platform that focuses on manufactured‑home loans. The transaction is valued at $21.1 million, consisting of $5 million in cash and $16.1 million in Ethzilla common stock—$14 million payable to Zippy and an additional $2.1 million to be issued to certain Zippy shareholders. The deal is expected to close in the first quarter of 2026.
The acquisition gives Ethzilla direct access to the estimated $14 billion manufactured‑home loan market, a segment that has historically been underserved by traditional lenders. By integrating Zippy’s platform with Ethzilla’s blockchain infrastructure, the company aims to tokenize chattel‑home loans and create new revenue streams through on‑chain securitization. The move aligns with broader industry trends toward real‑world asset tokenization and positions Ethzilla to capture liquidity and transparency gains in a niche mortgage market.
Under the agreement, Zippy will use Ethzilla’s Liquidity.io and Satschel platforms exclusively for blockchain operations and tokenization for 36 months following closing, and Ethzilla will appoint a director to Zippy’s board. The exclusivity provision secures a steady stream of tokenization work for Ethzilla while giving Zippy access to a proven DeFi ecosystem. The board seat also signals a deeper strategic partnership beyond a simple equity investment.
Ethzilla’s financials underscore the significance of the deal. In Q3 2025, the company reported negative EBITDA of $226.66 million and a net loss from continuing operations of $208.7 million on revenues of $4.1 million. The transaction, which involves a substantial portion of consideration paid in stock, will increase share count and dilute earnings, but it also opens a new, high‑margin asset class that could offset current losses over time. The move reflects Ethzilla’s broader strategy to diversify its real‑world asset portfolio and leverage its DeFi platform for new growth.
"This relationship is expected to give Ethzilla direct access to a new, large‑scale real‑world asset category and extend our tokenization capabilities into residential lending," said McAndrew Rudisill, Ethzilla’s chairman and CEO. Ben Halliday, Zippy’s co‑founder and CEO, added that Ethzilla’s blockchain infrastructure will enable Zippy to convert its assets into a technology‑driven investment vehicle. The partnership signals Ethzilla’s confidence in the manufactured‑home loan market and its commitment to expanding tokenization beyond traditional securities.
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