Thiel-Backed ETHZilla Dives into EtherFi, Injecting $100M ETH for Yield and Security

ETHZilla, a Nasdaq-listed company backed by Peter Thiel, has deployed $100 million of its Ethereum reserves into EtherFi, a liquid restaking protocol, to generate higher yields and strengthen Ethereum's network security. The company, previously 180 Life Sciences Corp., pivoted to digital assets in July and plans to raise $425 million through a PIPE deal for ETH acquisitions and treasury operations. ETHZilla's treasury strategy is managed by Electric Capital, which oversees an on-chain yield program intended to outperform standard ETH staking.

ETHZilla, a Nasdaq-listed company backed by Peter Thiel, has deployed $100 million of its Ethereum reserves into EtherFi, a liquid restaking protocol, to generate higher yields and strengthen Ethereum's network security. The company, previously known as 180 Life Sciences Corp., pivoted to digital assets in July and plans to raise $425 million through a PIPE deal for ETH acquisitions and treasury operations. ETHZilla's treasury strategy is managed by Electric Capital, which oversees an on-chain yield program intended to outperform standard ETH staking.

ETHZilla's supply of Ethereum recently rose to over 100,000 tokens, with the company holding approximately $456 million worth of ETH. The company's treasury strategy is part of its broader goal to become a benchmark for on-chain treasury management among public companies. By deploying $100 million into liquid restaking, ETHZilla aims to reinforce Ethereum's security while unlocking incremental yield opportunities to enhance returns on its treasury holdings.

EtherFi, selected for its ability to deliver incremental yield beyond standard ETH staking, allows users to access restaking yields via EigenLayer. This initiative marks ETHZilla's first engagement with DeFi protocols in treasury management, with additional integrations expected in the future. The partnership underscores ETHZilla's commitment to innovation in treasury asset management and represents a strategic evolution in its treasury management approach.

The move comes as Ethereum liquid restaking protocols have seen significant growth, with total value locked (TVL) across platforms hitting $30 billion. This surge is attributed to increased withdrawal activity from native ETH staking, with validators exiting traditional staking mechanisms in favor of other opportunities.

ETHZilla's shares have seen a notable increase, with a 90% jump last month following the announcement of Thiel's shareholder status. The company's treasury strategy is supported by an executive team and DeFi Council that includes capital markets experts, prominent Ethereum engineers, and top-tier DeFi founders.

References:
[1] https://www.theblock.co/post/369103/thiel-backed-ethzilla-to-deploy-100-million-in-eth-with-liquid-restaking-protocol-etherfi
[2] https://www.lookonchain.com/feeds/27379
[3] https://www.prnewswire.com/news-releases/ethzilla-plans-to-deploy-100-million-in-eth-to-etherfi-for-restaking-initiatives-302543423.html