In a surprising turn of events, Ethereum treasury firm ETHZilla has witnessed the exit of tech magnate Peter Thiel and Founders Fund, as revealed by a recent SEC filing. The strategic withdrawal has sent ripples through the crypto community.
Thiel’s Ethereum Treasury Exit
Peter Thiel and his associated Founders Fund entities have offloaded their complete stake in ETHZilla, signaling a significant shift in the company’s investor landscape. This development emerged through a 13G filing with the U.S. Securities and Exchange Commission, causing ETHZilla shares to drop nearly 7% in premarket trading.
ETHZilla’s Market Dynamics
Once a biotech firm known as 180 Life Sciences Corp, ETHZilla rebranded and embarked on an ambitious Ethereum-focused strategy in August 2025. Despite initial success, including a $565 million capital raise and substantial investor interest, the company has faced challenges, including a staggering 97% decline from its $107 high.
Pivoting Business Strategies
In a bid to adapt, ETHZilla has shifted its business model towards tokenization, aiming to drive future revenue and cash flow growth. Recent acquisitions, such as a portfolio of home loans and aircraft engines for tokenization, underline its commitment to this new direction.
Currently ranked as the sixth-largest corporate holder of Ethereum, ETHZilla holds a significant 69,802 ETH, valued at approximately $139 million. However, this pales in comparison to industry leader Bitmine Immersion Technologies.
As the crypto landscape evolves, ETHZilla’s strategic pivots and investor movements will be closely watched by stakeholders and analysts alike.
