A New Player in the Housing Loan Game

ETHZilla, a company that once focused on biotech, is now making waves in the real estate sector. They've just acquired a significant stake in Zippy, a lender specializing in manufactured home loans. This marks their second major move in just a week.

A Mix of Cash and Stock for a 15% Share

ETHZilla is paying a combination of cash and stock to secure a 15% share in Zippy. Their plan? To leverage Zippy's technology and ETHZilla's own systems to bring these loans onto the blockchain. This innovation will allow them to sell these loans to large investors.

Exclusive Deal and Board Seat

As part of the deal, ETHZilla will gain a seat on Zippy's board and an exclusive agreement for the next three years. This means Zippy must use ETHZilla's platforms for all their blockchain and tokenization needs.

ETHZilla's Broader Strategy

ETHZilla is known for holding a substantial amount of Ether, the cryptocurrency used on the Ethereum network. This investment is part of their larger strategy to enter the real-world assets market.

Stock Decline Amid Market Downturn

However, it's not all smooth sailing for ETHZilla. Their stock has been declining. Initially, their shift to holding Ether caused a stock surge, but now, it's down significantly. They're not alone—other companies holding Ether have also seen their stocks drop.

Risks of Holding Ether

Experts warn that companies holding Ether face risks. If the market dips further, these companies might be forced to sell their Ether, potentially driving the price down even more. Ether's price has indeed fallen from its peak, casting some uncertainty over these companies' futures.