ETHZilla to acquire 15% stake in Zippy

ETHZilla (ETHZ) announced the entry into several agreements with Zippy, a digital lending platform with the goal of bringing manufactured home loans. Under the terms of the agreements, ETHZilla will acquire a 15% fully diluted ownership stake in Zippy for $5M in cash and $14M in shares of common stock payable to Zippy and $2.1M in shares of common stock issuable to certain individual shareholders of Zippy. Zippy was the first company to introduce modern digital infrastructure and AI-enabled systems to manufactured housing lending. The company originates secured loans backed by manufactured homes through a platform engineered for institutional scale, real-time data integrity, and transparent investor reporting. ETHZilla’s prior investments in the parent company of Liquidity.io, Karus and now Zippy illustrate its goal to digitize real-world assets through regulated, AI-powered infrastructure. ETHZilla and Zippy have also agreed to aggregate manufactured home chattel loans for tokenization or securitization. For thirty-six months following the closing of the transaction, all blockchain infrastructure, digital asset issuance, and tokenization related to the operations of Zippy and its affiliates are required to be conducted exclusively using the Liquidity.io and Satschel, platforms. Institutional investors are expected to be able to purchase loans on a forward flow through the tokenization platform. In connection with the transaction, ETHZilla will appoint a director to Zippy’s board of directors.