ETHZilla Allocates $100M in ETH to Liquid Restaking on EtherFi
ETHZilla Corporation, a Nasdaq-listed Ethereum digital asset treasury backed by Peter Thiel, announced plans to deploy $100 million worth of ETH to EtherFi, a leading liquid restaking protocol. The move aims to secure higher yield returns while reinforcing Ethereum network security.
Strategic Shift to DeFi Restaking
In a statement released Tuesday, ETHZilla's executive chairman said the partnership with EtherFi �reinforces Ethereum�s security while unlocking incremental yield opportunities� for the firm�s treasury holdings. The executive described the collaboration as a significant step towards deeper engagement with decentralized finance (DeFi) practices, aligning innovation with a cautious approach to asset management.
EtherFi and the Growing Restaking Market
Liquid restaking protocols like EtherFi have seen notable growth, reflected in rising total value locked (TVL) figures. This trend follows increased withdrawal activity from Ethereum�s native staking mechanism, with validators shifting to new yield opportunities.
- EtherFi, leveraging EigenLayer infrastructure, allows users to access restaked yield on Ether.
- It leads the liquid staking sector in TVL, surpassing competitors such as Eigenpie.
Following the upcoming ETH allocation, ETHZilla�s Ethereum holdings will exceed 100,000 tokens.
Industry Context and Recent Activity
ETHZilla, which recently rebranded from 180 Life Sciences Corp., completed a $425 million private placement last month. The financing round involved prominent investors including Electric Capital, Polychain Capital, GSR, Konstantin Lomashuk, and Sreeram Kannan.
Shares of ETHZilla surged over 90% last month after Peter Thiel was announced as a shareholder. At the time of writing, ETHZ stock was down 1% at $2.78, valuing the company at approximately $480 million.
Among Ethereum-focused treasuries, Tom Lee's BitMine and Joe Lubin's SharpLink rank as the leading DATs, holding roughly 1.8 million ETH and 837,000 ETH, respectively, according to data from SER.
The deployment marks a significant step in the ongoing shift of institutional crypto treasuries toward DeFi-based yield strategies.
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