ETHZilla Accelerates DeFi Push With $47M ETH Deployment to Puffer

ETHZilla Corporation has committed $47 million worth of Ethereum to Puffer Finance, signaling its most aggressive DeFi treasury move yet.

Key Takeaways

• ETHZilla is deploying $47 million in Ethereum to Puffer, a liquid restaking protocol aimed at boosting DeFi yield and validator security.
• The initiative is part of ETHZilla’s larger DeFi strategy, which includes a separate $100 million restaking investment in Ether.fi.
• The company recently raised $350 million and repurchased $6.45 million in stock, demonstrating strong capital positioning for long-term crypto plays.
• ETHZilla is targeting capital-efficient, yield-bearing strategies, positioning itself as a leader among institutional Ethereum treasuries.

What Happened?

ETHZilla Corporation, a Nasdaq-listed company focused on Ethereum as a treasury asset, has announced a major DeFi move by deploying approximately 10,600 ETH (around $47 million) into Puffer Finance. This move complements a previously disclosed $100 million investment in Ether.fi, marking ETHZilla’s second major liquid restaking initiative in a month.

The announcement comes amid rising institutional interest in Ethereum restaking, as companies seek higher yields and more predictable liquidity from long-duration capital deployments.

ETHZilla is building “sticky” restaking sleeves: $100M to Ether. fi and ~$47M to Puffer’s pufETH pic.twitter.com/48cTaU6Nwy

— Blockworks (@Blockworks_) September 25, 2025

ETHZilla Bets Big on Ethereum Restaking

ETHZilla’s investment in Puffer underscores a calculated bet on Ethereum’s evolving validator infrastructure. Puffer Finance is a liquid restaking protocol that enhances yield by combining traditional staking rewards with an active strategy of compounding and selling restaking incentives. Its native token, pufETH, is a yield-bearing asset that grows in value over time.

• Amir Forouzani, a contributor to Puffer, described pufETH as a token that not only accrues staking rewards but also captures added value through restaking mechanics.
• The protocol also supports UniFi, an Ethereum Layer-2 rollup infrastructure that includes sequencing and MEV (maximum extractable value) capture. These earnings are expected to benefit pufETH holders over time.

With this move, ETHZilla becomes one of the most active Digital Asset Treasuries (DATs) in Ethereum restaking, joining a competitive field that includes Bit Digital and Ether Holdings.

Backed by Strong Capital and Strategy

ETHZilla’s financial positioning supports its aggressive on-chain strategy:

• The company recently raised $350 million through an add-on convertible debenture.
• It also repurchased 0.5 million shares at $2.41, totaling about $6.45 million in buybacks.
• According to Blockworks, ETHZilla has accumulated over 100,000 ETH in its treasury, ranking it among the top five Ethereum-holding public companies.

CEO McAndrew Rudisill emphasized that the partnership with Puffer :

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ETHZilla’s Multi-Sleeve Strategy

Unlike other DATs that maintain conservative or singular treasury strategies, ETHZilla is pioneering a multi-sleeve approach across different restaking providers. This approach diversifies risk while maintaining substantial positions across protocols like Ether.fi and Puffer.

• Ether.fi CEO Mike Silagadze noted the importance of long-duration capital from institutions like ETHZilla, which contrasts with more volatile retail flows.
• The company is prioritizing composability, capital efficiency, and long-term returns, while leaving specific validator risks to its service providers.

This strategy reflects a deliberate move away from the short-term mindset often seen in DeFi and toward more institutional-grade treasury management.

CoinLaw’s Takeaway

Honestly, I’m impressed by how ETHZilla is walking the talk. While many firms dabble in crypto headlines, ETHZilla is actually executing bold, real-money strategies in Ethereum’s restaking ecosystem. In my experience, most corporate treasuries hesitate to put skin in the game. But here we’ve got a company pushing over $150 million into restaking initiatives in less than a month. That’s not just ambition, that’s conviction.

Puffer’s design and potential to deliver yield beyond standard staking could redefine how institutions think about treasury yield. If this works, ETHZilla could prove that on-chain capital deployment beats traditional finance hands down.