ETHZilla Purchases Manufactured Home Loan Portfolio, Plans Tokenization on Ethereum L2

Rhea-AI Summary

ETHZilla (Nasdaq: ETHZ) acquired 95 manufactured and modular home loans and first‑lien mortgages from Zippy for approximately $4.7 million via new subsidiary ETHZilla Modular Mortgage LLC. The portfolio is expected to yield ~10.36% annualized. ETHZilla plans to tokenize the loans on an Ethereum Layer 2 network and launch the token on Liquidity.io in late February/early March. Servicing will remain with Zippy Loans, LLC. The transaction follows ETHZilla's recent tokenization-targeted aircraft-engine purchases and builds on a prior ~15% ownership stake in Zippy, aiming to scale tokenized, income-generating real-world assets.

Positive

• Acquired 95 manufactured/modular home loans for $4.7M
• Expected annualized yield of 10.36% from the portfolio
• Plans tokenization on Ethereum Layer 2 via Liquidity.io
• Holds ~15% ownership stake in Zippy, strengthening access
• Repeats tokenization after recent aircraft-engine acquisitions

Negative

• Servicing dependency: Zippy Loans, LLC will continue servicing
• Concentration risk: 95 loans focused on manufactured housing assets

News Market Reaction

-10.92%

27 alerts

-10.92% News Effect

-8.4% Trough in 6 hr 51 min

-$8M Valuation Impact

$66M Market Cap

1.3x Rel. Volume

On the day this news was published, ETHZ declined 10.92%, reflecting a significant negative market reaction. Argus tracked a trough of -8.4% from its starting point during tracking. Our momentum scanner triggered 27 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $8M from the company's valuation, bringing the market cap to $66M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Portfolio purchase price: $4.7 million Number of loans: 95 loans Expected annualized yield: 10.36% +1 more

4 metrics

Portfolio purchase price $4.7 million Acquisition of 95 manufactured and modular home loans

Number of loans 95 loans Manufactured and modular home loan portfolio acquired from Zippy

Expected annualized yield 10.36% Yield from seasoned residential credit assets in acquired portfolio

Equity stake in Zippy 15% Fully diluted ownership of Zippy, Inc. acquired in Dec 2025

Market Reality Check

Price: $3.10 Vol: Volume 893,244 is 1.58x t...

high vol

$3.10 Last Close

Volume Volume 893,244 is 1.58x the 20-day average of 564,165, indicating elevated trading activity before this news. high

Technical Shares traded well below the 200-day MA, with price at $3.48 versus 200-day MA of $16.57 before this announcement.

Peers on Argus

ETHZ was down 8.18% while several biotech peers like ABSI (-5.52%), AURA (-3.36%...

ETHZ was down 8.18% while several biotech peers like ABSI (-5.52%), AURA (-3.36%), and INBX (-3.09%) also traded lower, but momentum scanners did not flag a coordinated sector move.

Historical Context

5 past events · Latest: Dec 19 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 19	Board appointments	Positive	+8.5%	Added two independent directors to support governance and tokenization strategy.
Dec 16	Shareholder letter	Positive	-1.4%	Outlined 2026 priorities, partnerships, capital actions, and first RWA token timing.
Dec 10	Note redemption plan	Positive	-8.2%	Planned full redemption of <b>$516M</b> 2028 converts to streamline capital structure.
Dec 10	Zippy stake & RWA	Positive	-8.2%	Took <b>15%</b> Zippy stake and exclusive tokenization agreements for manufactured loans.
Dec 09	Debenture financing	Positive	+5.0%	Expanded convertible debentures and detailed ETH NAV, cash, and mNAV metrics.

Pattern Detected

Recent strategic and financing announcements have frequently seen negative next-day price reactions, even when news appeared constructive, while governance or macro-crypto items sometimes aligned positively.

Recent Company History

Over the past few months, ETHZilla has pivoted aggressively into real‑world asset tokenization and balance sheet restructuring. In December 2025, it agreed to a 15% stake in Zippy and outlined 2026 priorities around RWA tokenization and Liquidity.io. It also moved to redeem $516 million of 2028 convertible notes and reported large digital‑asset financings and a significant quarterly net loss. Board refreshes in December 2025 aimed to bolster governance as the company executed this new strategy, into which today’s manufactured‑home loan tokenization fits directly.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-12-18

An effective Form S-3 shelf filed on Dec 18, 2025 covers potential resale of up to 2,726,983 shares of common stock, about 14.4% of 18,935,791 shares outstanding at that time. All shares would be sold by existing stockholders, and ETHZilla would not receive proceeds, though it would bear registration costs.

Market Pulse Summary

The stock dropped -10.9% in the session following this news. The decline reflects market caution tow...

Analysis

The stock dropped -10.9% in the session following this news. The decline reflects market caution toward ETHZilla despite adding a manufactured‑home loan pool with an expected 10.36% annualized yield. Past strategic and financing updates, including a planned redemption of $516 million in convertible notes and prior Zippy transactions, have also seen negative reactions in several cases. Some holders may focus on overall leverage, complex capital structure, and the existing registration for 2,726,983 resale shares when assessing incremental tokenization deals.

Key Terms

tokenization, ethereum layer 2, on-chain, first-lien mortgages

4 terms

tokenization technical

"a financial technology company building institutional-grade infrastructure for real-world asset tokenization"

Tokenization is the process of converting real-world assets or rights into digital tokens stored on a computer network. This allows assets, such as property or investments, to be divided into smaller parts, making them easier to buy, sell, or transfer electronically. For investors, tokenization can increase access to a wider range of investments and make transactions faster and more efficient.

ethereum layer 2 technical

"leveraging Ethereum Layer 2 infrastructure to support on-chain asset tracking"

A set of secondary networks built on top of the Ethereum blockchain that process transactions faster and cheaper while using the main Ethereum chain to finalize and secure results. Think of it as additional express lanes beside a busy highway: they allow more cars (transactions) to move quickly at lower cost without replacing the original road. Investors care because Layer 2s can boost the usability and adoption of Ethereum-based apps, potentially increasing transaction volume, fees, and value capture across the ecosystem.

on-chain technical

"support on-chain asset tracking and automated cash-flow distribution"

On-chain describes actions or data that are recorded directly on a blockchain, a public digital ledger that creates a permanent, time-stamped record of transactions. For investors, on-chain activity provides verifiable evidence of transfers, ownership changes or automated program actions (like contract-driven payments); seeing these entries is like checking a bank statement and helps assess liquidity, settlement finality, fees, and transparency when judging risk and market behavior.

first-lien mortgages financial

"home loans, together with the first-lien mortgages securing the loans"

A first-lien mortgage is a home loan that gives the lender the primary legal right to be paid back from the property if the borrower defaults; think of the lender as first in line to claim the asset. For investors, first-lien status matters because it reduces credit risk and usually leads to lower interest rates and higher recovery rates in a foreclosure, making these loans more secure compared with subordinate or second-lien debt.

AI-generated analysis. Not financial advice.

Transaction will extend ETHZilla's tokenized finance framework into residential credit assets with recurring cash flows

PALM BEACH, Fla., Feb. 5, 2026 /PRNewswire/ -- ETHZilla Corporation (Nasdaq: ETHZ) ("ETHZilla" or the "Company"), a financial technology company building institutional-grade infrastructure for real-world asset tokenization, today announced that it has acquired a portfolio of manufactured and modular home loans from Zippy Manufactured Home Credit Fund I L.P. ("Zippy").

ETHZilla plans to tokenize the loan portfolio into a cash-flow-generating manufactured home loan token, leveraging Ethereum Layer 2 infrastructure to support on-chain asset tracking and automated cash-flow distribution. The Company intends to launch the token through the Liquidity.io ecosystem in late February/early March.

The acquisition of the manufactured and modular home loan portfolio from Zippy follows ETHZilla's recent purchase of two CFM56-7B24 aircraft engines on lease with a major air carrier, which it also intends to tokenize and make available on Liquidity.io in the near future. Together, these transactions and their associated first-of-a-kind tradable tokens reflect ETHZilla's creation of what it believes is a repeatable and scalable framework across multiple real-world asset classes, offering access to new and differentiated income-oriented markets.

"This transaction represents a natural extension of the tokenization strategy we've been building, and underscores ETHZilla's disciplined approach to bringing established, cash-flow-generating assets on-chain," said McAndrew Rudisill, chairman and chief executive officer of ETHZilla. "Manufactured housing loans offer predictable cash flows and strong underlying collateral, which we believe makes them well suited for tokenization within a regulated, transparent structure."

Through its newly formed wholly owned subsidiary, ETHZilla Modular Mortgage LLC, the Company acquired 95 manufactured and modular home loans, together with the first-lien mortgages securing the loans, for a total purchase price of approximately $4.7 million. The loans will continue to be serviced by Zippy Loans, LLC, a wholly owned subsidiary of Zippy.

The acquired loan portfolio is expected to generate an annualized yield of approximately 10.36%, reflecting contractual interest payments from a seasoned pool of residential credit assets with recurring cash-flow characteristics.

The acquisition builds on ETHZilla's existing relationship with Zippy. In December 2025, ETHZilla acquired approximately 15% of the fully diluted ownership of Zippy, Inc., the parent company of Zippy Manufactured Home Credit Fund I L.P., strengthening the Company's access to origination, servicing, and asset-level expertise in the manufactured housing finance market.

About ETHZilla

ETHZilla Corporation (Nasdaq: ETHZ) is an early mover in developing Ethereum-based infrastructure for tokenized real-world assets, bridging traditional finance with blockchain technology. ETHZilla plans to transform illiquid, institutional-grade assets—from auto loans to aerospace equipment—into programmable, tradable financial products on Ethereum Layer 2 protocols. Through a regulated platform and strategic partnerships, ETHZilla is expanding global access to investment opportunities that have historically been limited to select institutions. By tokenizing real-world assets at scale, ETHZilla is creating a new asset class that combines the regulation and stability of traditional finance with the efficiency and accessibility of blockchain technology, which it believes will mark the beginning of a fundamental shift in how real-world value moves through global markets.

No Offer or Solicitation

This press release and the information contained herein is for informational purposes only and is not a solicitation of an offer to buy or exchange any securities, or any commodity or instrument or related derivative, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, sale or exchange would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended (the "Act"), or an exemption therefrom. Investors should consult with their counsel as to the applicable requirements for a purchaser to avail itself of any exemption under the Act.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected benefits of the acquisition of the home loans, expectations with respect to future performance, including the expected return on invested capital, and growth of the Company, the ability of the Company to execute its plans, undertake tokenization activities and achieve future performance.

Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the Company's control, and actual results may differ materially. These statements may be preceded by, followed by, or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "targets," "scheduled," "anticipates," "soon," "goal," "intends," or similar expressions. Forward-looking statements are not guarantees of future performance, and involve risks, uncertainties and assumptions that may cause our actual results to differ materially from the expectations that we describe in our forward-looking statements. There may be events in the future that we are not accurately able to predict, or over which we have no control.

Applicable risks and uncertainties include, among others, the performance of the planned token discussed above and other planned Company tokens, including anticipated yields thereof; failure to realize the anticipated benefits of the tokenization of real word assets (including the tokenization of home loans and engines discussed above) and other risks associated therewith, including litigation, regulatory, and others; failure to realize the anticipated benefits of the Company's digital asset treasury strategy; previously disclosed stock repurchase program; the Company's ability to achieve profitable operations; risks relating to the Company's recent acquisitions; expectations regarding the capitalization, resources and ownership structure of the Company; the Company's digital asset treasury strategy, the digital assets held by the Company, the Company's current and anticipated yield strategies, including its participation in DeFi protocols and tokenization of real world assets; fluctuations in the market price of ETH that will impact the Company's accounting and financial reporting; government regulation of cryptocurrencies; the Company's ability to repurchase shares of common stock, the timing thereof, purchase price thereof, and the fact that repurchases may not be undertaken under the stock repurchase program; changes in securities laws or regulations, including those related to digital assets including tokens; changes in business, market, financial, political and regulatory conditions; risks relating to the Company's OTC transactions, including the Company's ability to repay such facilities, covenants associated therewith and security interests associated therewith, including security interests over certain of our cash and ETH; risks relating to the Company's previously announced ATM offering, including potential downward pressure on the Company's stock price associated therewith; risks relating to the Company's operations and business, including the highly volatile nature of the price of ETH and other cryptocurrencies; the risk that the Company's stock price may be highly correlated to the price of the digital assets that it holds; risks related to increased competition in the industries in which the Company does and will operate; risks relating to significant legal, commercial, regulatory and technical uncertainty regarding digital assets generally; risks relating to the treatment of crypto assets for U.S. and foreign tax purpose, expectations with respect to future performance, growth and anticipated acquisitions; potential litigation involving the Company; global economic conditions; geopolitical events and regulatory changes; access to additional financing, and the potential lack of such financing; and the Company's ability to raise funding in the future and the terms of such funding, including dilution caused thereby, as well as those risks and uncertainties identified and those identified under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, as well as the supplemental risk factors and other information the Company has or may file with the SEC. Readers are cautioned not to place undue reliance on these statements. Investors should also be aware that under U.S. generally accepted accounting principles (GAAP), certain crypto assets must be measured at fair value, with changes recognized in net income for each reporting period. These fair value adjustments may cause significant fluctuations in the Company's balance sheet and income statement from period-to-period. In addition, for certain crypto assets, including ETH, which the Company holds, impairment charges may be required to be reported in net income if the market price of such assets (including ETH) falls below the cost basis at which those assets are carried on the balance sheet. Readers are encouraged to read the Company's filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update any forward-looking statements except as required by law. The Company's business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

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SOURCE ETHZilla Corporation

FAQ

What did ETHZilla (ETHZ) acquire on February 5, 2026?

ETHZilla acquired 95 manufactured and modular home loans for about $4.7 million. According to the company, the purchase includes first‑lien mortgages and will be held by ETHZilla Modular Mortgage LLC and serviced by Zippy Loans, LLC.

What yield does the acquired ETHZ loan portfolio expect to generate?

The acquired portfolio is expected to generate an annualized yield of approximately 10.36%. According to the company, this reflects contractual interest payments from a seasoned pool with recurring cash‑flow characteristics.

When will ETHZilla (ETHZ) launch the tokenized manufactured home loan product?

ETHZilla intends to launch the token in late February to early March 2026 on Liquidity.io. According to the company, the token will use Ethereum Layer 2 infrastructure for on‑chain tracking and automated cash distribution.

How does the Zippy relationship affect ETHZilla's manufactured loan strategy?

ETHZilla already owns roughly 15% of Zippy, which the company says strengthens access to origination and servicing. According to the company, this relationship supports sourcing and operational expertise for tokenized residential credit.

Will Zippy continue servicing the loans ETHZilla purchased?

Yes. According to the company, Zippy Loans, LLC will continue to service the acquired loans under existing arrangements. This maintains operational continuity while ETHZilla focuses on tokenization and on‑chain distribution.