ETHZilla to Invest $100M in EtherFi for Enhanced Yield

ETHZilla plans to deploy $100 million in Ether to EtherFi for restaking initiatives, aiming to generate higher yields on its treasury holdings. The company has accumulated 102,246 Ether, with approximately $100 million of Ether to be deployed to EtherFi. This move is expected to enhance the company's financial performance.

Title: ETHZilla's $100 Million Ether Deployment to EtherFi for Restaking Initiatives

ETHZilla Corporation (ETHZ) has announced plans to deploy approximately $100 million worth of Ether (ETH) to EtherFi, a liquid restaking protocol, aiming to generate higher yields on its treasury holdings. This strategic move represents the company's first engagement with decentralized finance (DeFi) protocols for treasury management [1].

As of August 31, 2025, ETHZilla held 102,246 ETH and ETH equivalents, valued at approximately $456 million. The company's total outstanding shares stood at 166.6 million as of September 1, 2025 [2]. The decision to deploy $100 million into liquid restaking is part of ETHZilla's ongoing effort to optimize its ETH treasury while reinforcing Ethereum's security [3].

EtherFi was selected for its ability to deliver incremental yield beyond standard ETH staking through restaking. This initiative underscores ETHZilla's commitment to innovation in treasury asset management and represents the company's first integration with DeFi protocols in treasury management [4].

McAndrew Rudisill, Executive Chairman of ETHZilla, stated, "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." Mike Silagadze, Founder and CEO of EtherFi, added, "This partnership demonstrates growing institutional confidence in decentralized protocols and showcases how liquid restaking can benefit corporate treasuries" [3].

The move comes amidst recent shareholder activity, including the cancellation of 1.318 million shares previously held by Elray Resources, for a $1 million settlement agreement. This adjustment reflects ETHZilla's ongoing efforts to streamline its capital structure and enhance transparency [2].

ETHZilla's stock reacted negatively in the short term following the announcement, closing lower by 4.98% to end the day at $2.67. However, the company remains committed to its long-term treasury yield growth strategy and expects to pursue additional DeFi protocol integrations in the future [2].

References
[1] https://seekingalpha.com/news/4491134-ethzilla-plans-to-deploy-100-million-in-eth-to-etherfi-for-restaking-initiatives
[2] https://coincentral.com/ethzilla-corporation-ethz-stock-slides-4-98-amid-100m-defi-treasury-pivot-with-etherfi-2/
[3] https://www.investing.com/news/cryptocurrency-news/ethzilla-plans-100-million-ether-deployment-to-etherfi-protocol-432SI-4219256
[4] https://www.marketscreener.com/news/ethzilla-plans-to-deploy-100-million-in-eth-to-etherfi-for-restaking-initiatives-ce7c50d3df8ff723