ETHZilla Publishes Shareholder Letter from Chairman of the Board

Core Insights - ETHZilla Corporation is focused on connecting institutional capital with decentralized finance through Ethereum, aiming to tokenize real-world assets (RWA) and generate yield from Ether (ETH) accumulation [2][3] Strategic Execution - The company has established core capabilities for RWA tokenization, including a partnership with Liquidity.io, which provides access to a regulated exchange for creating Ethereum Layer 2 (L2) tokenized assets [3] - Strategic partnerships with Karus and Zippy have been formed to access high-quality credit assets, specifically in auto loans and manufactured housing loans, which are well-suited for tokenization [4][5] Market Opportunities - The total addressable market for RWA tokenization is projected to be in the trillions of dollars, with initial focus areas including auto loans, manufactured home loans, aerospace equipment, and commercial real estate [4][9] - Tokenization of manufactured home loans represents a ~$14 billion market, which has historically been limited to a few private lenders, thus creating new investment opportunities [7] Revenue Generation Model - ETHZilla's tokenization model includes four economic engines: yield generation from acquired assets, origination fees from tokenized products, asset management fees, and transaction fees from secondary market trading [10][14] - The company anticipates meaningful revenue growth and scalable cash flow as additional assets are tokenized and brought to market [10] Future Plans - The company plans to redeem $516 million of its 2028 convertible notes to streamline its capital structure and enhance operational flexibility [11] - ETHZilla expects to list its first RWA token on Liquidity.io in early 2026, with ongoing evaluations for funding new asset acquisitions [12] Leadership and Governance - The leadership team possesses deep market connectivity and is focused on expanding governance frameworks to support the company's strategic initiatives [13][16] - The company believes it is well-positioned to be a first mover in the tokenization of assets, leveraging Ethereum as the preferred infrastructure [15][16]