ETHZilla Corporation

Hello and welcome to ETHZILLA Corporation's 3rd Quarter 2025 Earnings Conference Call. During today's discussion, all callers will be placed in a listen-only mode. Following management's prepared remarks, the call will open for questions. This call is being recorded on November 14, 2025, and a replay will be made available on the Investor Relations page of ETHZILLA's website at ethzilla.com later today. I will now turn the call over to John Kristof, Senior Vice President, Corporate Communications and Investor Relations.

Thank you, Megan. Hello, and thank you for joining ETHZILLA's Third Quarter 2025 Financial Results Conference Call. Joining me on the call today are McAndrew Rudisill, Chairman and Chief Executive Officer, and John Saunders, Chief Financial Officer. We hope you've had an opportunity to review our Third Quarter 2025 Financial Results press release that we issued earlier this morning. We've also posted an earnings presentation on the IR page of our website. As a reminder, some of the matters we'll be discussing on this morning's call are forward-looking in nature. Please keep in mind that actual results could differ materially from what is expressed in these forward-looking statements. eZilla assumes no obligation to update the information, and we encourage you to refer to our more recent filings with the SEC for a discussion of factors that could cause actual results to differ materially from these statements. During our call, we may also reference certain non-GAAP financial measures, which we believe provide useful information for investors. Reconciliation of these non-GAAP measures to the corresponding GAAP measure can be found in our press release file today and on the presentation on our website. With that, I'll turn the call over to McAndrew.

Thank you, John, and good morning. Thank you for joining us today for ETHDL's third quarter financial results call. This marks our first call as EthZilla, and I'm proud to share our initial results and outline how we're building a strong foundation for long-term value creation. EthZilla is a technology company connecting traditional finance with decentralized finance through the Ethereum network. We hold and deploy ETH on our balance sheet to generate on-chain yield and support the development of tokenized real-world assets. Our platform strategy combines ETH accumulation and superior yield generation through restaking protocols with regulated infrastructure for trading tokenized assets, allowing institutional capital to participate in DeFi under public company compliance and oversight. This model is what makes ETHZILL unique. We are not a digital asset treasury company. This was a transformational quarter as we underwent our strategic rebrand, officially becoming ETHZilla and divesting our legacy biotech assets. During the quarter, we strengthened our balance sheet, completed three financings, deepened our partnerships across DeFi, and began deploying ETH to generate yield. We raised approximately $931 million through a $425 million private placement, a $156 million convertible note, and a subsequent $360 million convertible note. The funding moves us from concept to execution by supporting e-purchases, deployments, and the infrastructure behind tokenized assets and on-chain yield generation. Supporting the first pillar of our growth strategy, we purchased approximately 102,000 ETH at a cost of approximately $415 million. And we quickly put our ETH to work. We initiated the second pillar of our strategy to generate superior yield on our ETH holdings. Through our partnership with Electric Capital, they deployed our ETH with EtherFi and Puffer Finance. Beginning in mid-August, we deployed over 300 million across leading restating protocols and generated 4.1 million in the second half of the quarter from these Layer 2 deployments. These initiatives established our foundation for recurring on-chain cash flow, demonstrating how we can use our balance sheet to generate incremental returns that support EastZilla's long-term growth. By directly deploying corporate capital into Ethereum-based yield protocols with institutional oversight, We're leading by example and demonstrating how a public company can bridge traditional finance and decentralized finance responsibly and profitably. It's important to partner with these L2 protocols in order to enable the third and most important component of our strategy, creating a regulated exchange infrastructure for tokenized assets. Our strategic investment and partnership with Liquidity.io marked a foundational milestone. Liquidity.io is one of the first regulated marketplaces licensed to issue and trade tokenized private assets. We believe that our 15% stake in the parent company of Liquidity.io, an exclusive right to list Ethereum L2 tokens on liquidity exchange, positions Eastel at the forefront of the movement to bring private credit, real estate, and other yield-generating assets on-chain. Simultaneously, Liquidity.io's partnership with RF Lafferty will make it one of the largest pre-IPO equity marketplaces in the world. This strategic partnership provides us with the infrastructure, compliance framework, and distribution network to bring real-world assets directly into decentralized markets. It is important to note we have a right of first refusal to continue to increase our equity position in Liquidity.io as more capital is raised. We believe the migration of assets to the Ethereum network is no longer speculative. It has become inevitable based on the structural advantages the Ethereum network provides. Advantages such as global accessibility, programmable settlement, transparent ownership, and composability allowing assets and liquidity to move seamlessly between applications. These along with improved US regulatory clarity like the Genius Act and growing institutional adoption from some of the largest financial institutions in the world, give us confidence in the future of tokenized real world assets as a core component of global markets. Our focus now turns to execution and realizing the potential growth and recurring cashflow from these strategic initiatives. In the coming weeks, we expect to begin listing the first ETHZilla managed tokenized real world assets on liquidity.io. This is a culmination of all our hard work in building out the right foundational operating model. We believe it demonstrates our full flywheel in action from acquisition and token creation to yield distribution. We expect to replicate this process across multiple asset classes, establishing a recurring and scalable model for on-chain income and direct cash flow to Eastzilla. Since September 1, we repurchased about 2.1 million shares of our common stock at a material discount to NAV. We are aware of the value of the assets on our balance sheet, and we are also conscious of our recurring and growing cash flow stream. The best way to normalize this is through the prudent and opportunistic use of share repurchases. As we scale deployment, risk management remains central. Our deployments are executed by Electric Capital, one of the industry's most experienced digital asset managers and among our largest shareholders. Electric capital provides rigorous due diligence, diversification, and ongoing monitoring across restaking and DeFi protocols, giving us the confidence to deploy capital productively while maintaining institutional-grade standards of control, compliance, and transparency. This structure ensures both professional management and full alignment of interests between East Scylla and our investors. While the tokenization of global assets is still in its early stages, we believe Eastzilla is uniquely positioned to lead this charge and that we have the right foundation and partnerships in place to allow us to be the first movers in this space. We believe the market is at an inflection point and that there's going to be a significant differentiation in business models across this entire space. We stand at the forefront of this change as we embark on bringing the first real-world assets on chain. We remain extremely focused on building recurring cash flow. It is an exciting time to be in this space, and I'm excited to speak more about what we have planned in the coming weeks. Before turning the call over to John, I want to take a moment to recognize and congratulate him on his promotion to Chief Financial Officer. John is a talented strategic financial leader with decades of experience in finance, accounting, treasury, capital, strategy, and operational transformation. The board and I have the highest confidence in John's ability to play a key role in scaling East Silla as a recognized leader in bridging traditional finance and DeFi platforms. And with that, I'll turn it over to John.