A new SEC filing confirms Peter Thiel and Founders Fund have fully exited ETHZilla. The move comes as the company pivots from aggressive Ethereum accumulation to real-world asset (RWA) tokenization.
Key Points
- Peter Thiel and affiliated Founders Fund entities no longer hold any stake in ETHZilla, per a Schedule 13G filing.
- ETHZilla shares fell nearly 7% in premarket trading to around $3.20, down approximately 97% from the last August peak of $107.
- The company raised $565 million in August 2025 to launch its Ethereum treasury strategy.
- ETHZilla has sold portions of its Ethereum holdings, including $40M in October 2025 and 24,291 ETH in December 2025.
- The company’s Ethereum holdings total 69,802 ETH (~$139 million), ranking it seventh among corporate ETH holders.
Peter Thiel Exits ETHZilla
According to a Schedule 13G filing submitted to the U.S. SEC late Tuesday, Thiel and affiliated Founders Fund entities have completely divested their holdings in the Ethereum-focused treasury firm. The disclosure confirms the prominent tech investor no longer maintains an ownership stake.
Following the filing, ETHZilla (NASDAQ: ETHZ) shares fell nearly 7% in premarket trading, changing hands at around $3.20 based on Google Finance data. At that price, the stock is down roughly 97% from its $107 peak reached last August — a high point fueled by investor enthusiasm surrounding the company’s strategic transformation.
From Biotech Roots to Ethereum Treasury Model
In August 2025, Thiel and related Founders Fund entities disclosed a 7.5% ownership stake. The investment coincided with the company’s rebrand from biotech firm 180 Life Sciences Corp. At the time, news of Thiel’s involvement triggered a surge of more than 90% in a single trading session.
Shortly afterward, on August 18, 2025, ETHZilla formally launched an Ethereum treasury strategy following a $565 million capital raise. At the time, management positioned the initiative as a way to provide public market investors with structured Ethereum exposure while generating yield through staking.
The funding round attracted more than 60 investors, including Polychain Capital, Electric Capital, and GSR, cementing ETHZilla’s image as an aggressive corporate accumulator of Ethereum.
However, that posture began to soften within months. For instance, in October 2025, the company sold roughly $40 million in Ethereum, directing proceeds toward a $250 million board-authorized share repurchase program.
Then, in December, ETHZilla sold an additional 24,291 ETH. Those tokens were valued at $74.5 million at the time. The sale funded the redemption of outstanding senior secured convertible notes.
Together, these moves signaled a shift away from pure accumulation toward balance-sheet optimization.
Strategic Pivot to Tokenized Real-World Assets
By December, ETHZilla signaled a broader strategic redirection. Specifically, the company stated that future value creation would center on revenue and cash flow generated from tokenizing real-world assets.
Since then, ETHZilla has advanced multiple initiatives in that area. On February 5, the firm completed the acquisition of 95 manufactured and modular home loans, valued at roughly $4.7 million, and is preparing to tokenize the portfolio on an Ethereum Layer 2 platform. The assets are projected to deliver a 10.36% annualized yield.
In addition, the company purchased two CFM56-7B24 aircraft engines, which will be tokenized through Liquidity.io, an SEC-regulated alternative trading system. These transactions illustrate management’s push to diversify beyond purely crypto-native holdings into yield-bearing real-world assets.
Despite the aforementioned sales and strategic changes, ETHZilla remains a significant holder of Ethereum. CoinGecko data ranks the firm as the seventh-largest corporate ETH holder, with 69,802 ETH valued at roughly $139 million at current prices.
For context, sector leader Bitmine Immersion Technologies holds 4,371,497 ETH, worth about $8.7 billion. Meanwhile, the top 10 Ethereum treasury companies collectively control more than 6.1 million ETH with an aggregate market value exceeding $12 billion.
Against this backdrop, Thiel’s exit underscores a turning point for ETHZilla. The company now appears focused on building a tokenized asset platform while maintaining a sizable, though reduced, Ethereum position.
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