Institutional DeFi Participation Rises as ETHZilla Commits $47 Million to Puffer’s Secure Yield Strategy

ETHZilla Corporation (NASDAQ: ETHZ) has revealed plans to strategically allocate around 10,600 ETH—worth about $47 million as of September 24, 2025—into Puffer, a liquid restaking protocol, aiming to boost returns on its

treasury assets. This initiative supports the company’s broader mission to utilize decentralized finance (DeFi) platforms for generating consistent income from its digital asset reserves ETHZilla to deploy $47 million in ETH to Puffer restaking protocol [ 1 ]. The partnership was influenced by Puffer’s unique 2 ETH validator bond system, which offers protection against validator errors or malicious actions ETHZilla to deploy $47 million in ETH to Puffer restaking protocol [ 1 ].

This move highlights a rising trend among institutional investors to maximize ETH returns through restaking solutions. Puffer’s design promotes efficient use of capital while upholding security—an essential factor in a sector where liquidity issues and smart contract vulnerabilities persist ETHZilla to deploy $47 million in ETH to Puffer restaking protocol [ 1 ]. McAndrew Rudisill, CEO of ETHZilla, pointed out that the collaboration could “further our goal of producing significant cash flow from Ethereum” and help establish the company as a frontrunner in deploying capital to “innovative infrastructure” ETHZilla to deploy $47 million in ETH to Puffer restaking protocol [ 1 ]. Amir Forouzani, founder of Puffer, called the alliance a “new benchmark for institutional involvement in Ethereum restaking,” emphasizing the balance between security and yield ETHZilla to deploy $47 million in ETH to Puffer restaking protocol [ 1 ].

This transaction marks ETHZilla’s shift from a conventional DeFi participant to a more structured treasury operator. The firm, which earns income from tokenization services and DeFi platforms, previously committed $100 million in ETH to EtherFi for restaking and approved a $250 million share buyback ETHZilla [ 3 ]. The current allocation builds upon its Ethereum-centric approach, with holdings of 82,186 ETH as of August 2025 ETHZilla [ 3 ]. With ETH trading at roughly $4,423 per coin (as of September 24), the 10,600 ETH allocation accounts for about 0.03% of the total circulating supply ETHZilla to deploy $47 million in ETH to Puffer restaking protocol [ 1 ].

The wider DeFi sector is experiencing a move toward yield strategies tailored for institutions. Bernstein Research observed that Ethereum staking yields are currently near 3%, with opportunities for higher returns through restaking and DeFi yield farming, though these strategies come with added liquidity and security risks Ethereum Yield Strategies Reshape Investment Landscapes [ 7 ]. ETHZilla’s use of Puffer’s system helps address these challenges by focusing on validator dependability and capital efficiency. Additionally, the company’s preference for Ethereum-based treasuries—unlike competitors such as Strategy Inc.—shows its trust in Ethereum’s deflationary model and Layer-2 upgrades like Dencun (EIP-4844), which lower transaction fees and improve scalability.

Industry experts have pointed out the structural impact of such treasury approaches. Bernstein estimates that a $1 billion Ethereum treasury could yield between $30 million and $50 million annually from staking rewards Ethereum Yield Strategies Reshape Investment Landscapes [ 7 ]. While ETHZilla’s 10,600 ETH allocation is relatively small, it demonstrates alignment with institutional practices that favor yield generation over maintaining liquidity. The company’s focus on Ethereum also reflects the increasing use of structured products and efficient protocols, as seen in collaborations like those between FalconX and Intchains Group to enhance yields.

Investing in Puffer is expected to reinforce Ethereum’s validator network by spreading control among various participants, thereby improving both decentralization and security. ETHZilla’s involvement in restaking also supports Ethereum’s transition to a proof-of-stake system after the Merge, where diverse validators and active capital usage are vital for network strength. As more institutions engage with DeFi, these strategies are likely to shape broader market trends, including how liquidity is distributed and how risks are managed.