Billionaire enterprise capitalist and co-founder of PayPal and Palantir Applied sciences, Peter Thiel’s Founders Fund, has totally divested from ETHZilla, a digital asset treasury agency that holds Ethereum (ETH).
The event comes as digital asset treasury companies face mounting strain amid the broader crypto market downturn.
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Peter Thiel Cuts Ties With ETHZilla Throughout Crypto Market Stoop
The digital asset treasury wave gained momentum final yr, with a number of firms adopting Technique’s (previously MicroStrategy) 2020 Bitcoin (BTC) playbook. Companies started accumulating cryptocurrencies as reserve property, attracting heightened investor consideration as costs climbed and fairness valuations expanded.
BeInCrypto reported in August 2025 that via entities similar to The Founders Fund, Thiel managed a 7.5% stake in ETHZilla. Nonetheless, the most recent SEC submitting reveals that entities managed by Thiel reported zero possession within the firm by the tip of 2025, indicating a whole exit.
“This matters because Thiel is considered smart institutional capital, and a full exit from an ETH treasury firm could signal shifting sentiment, risk reduction, or a strategic rotation away from Ethereum exposure,” Crypto City Corridor posted.
The transfer comes in opposition to the backdrop of a broader market downturn. In October, crypto markets suffered a pointy downturn, also known as the “10/10” or “Black Friday” crash. The following months prolonged the decline.
In keeping with CryptoRank knowledge, Ethereum fell 28.4% in This autumn 2025, marking its first adverse fourth quarter since 2022. Though 2026 started with a quick restoration, the rebound shortly reversed.
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ETH closed January 2026 down 17.7%, and to this point in February, its value has declined one other 18.1%. At press time, it traded at $2,017.
Ethereum (ETH) Value Efficiency. Supply: TradingView
Treasury Technique Underneath Pressure as Ethereum Decline Hits Company Holders
The sustained value weak spot has straight impacted digital asset treasury companies, decreasing the worth of their crypto holdings and pressuring inventory costs. For instance, BitMine is at present sitting on unrealized losses exceeding $7 billion. Moreover, its share value is down 25.7% year-to-date.
ETHZilla, which beforehand operated as 180 Life Sciences earlier than pivoting towards an Ethereum treasury technique and rebranding, has confronted related headwinds. At its peak, the corporate held greater than 100,000 ETH.
As market situations deteriorated in October, the corporate moved shortly to trim its publicity. Towards the tip of that month, ETHZilla offloaded roughly $40 million in Ether, directing the proceeds towards share buybacks.
A second spherical of gross sales adopted in December, totaling about $74.5 million. The funds had been allotted to repay senior secured convertible debt. CoinGecko knowledge reveals the corporate now holds 69,802 ETH, a considerable discount from its earlier peak place.
The corporate has since outlined one more strategic shift. In keeping with Bloomberg, ETHZilla’s wholly owned subsidiary, referred to as ETHZilla Aerospace, is in search of to offer tokenized publicity to fairness in leased jet engines.
