Billionaire investor Peter Thiel and his venture firm Founders Fund have fully exited their position in ETHZilla Corp., according to new SEC filings. The disclosure shows affiliated entities held zero shares as of December 31, 2025, down from roughly 7.5 percent ownership reported last summer.
The move signals a sharp shift in sentiment toward public companies that focus on holding Ethereum as a treasury asset.
From Hype to Headwinds
ETHZilla, formerly known as 180 Life Sciences, pivoted in mid 2025 to a crypto treasury strategy centered on Ethereum accumulation. The shift initially attracted major investors and drove a surge in its share price.
However, market conditions changed quickly. Ethereum prices faced sustained volatility, and investor appetite for treasury heavy crypto equities cooled. Earlier disclosures revealed that ETHZilla sold approximately $74.5 million worth of ETH to manage convertible note obligations and stabilize its balance sheet.
As a result, confidence in the corporate Ethereum treasury model weakened.
Founders Fund’s complete divestment highlights broader skepticism around companies that rely primarily on static crypto holdings. Without strong revenue streams or yield generating strategies, these firms often face amplified risk during downturns.
Key challenges impacting Ethereum treasury companies include:
- Volatile ETH price swings
- Limited operating income beyond asset holdings
- Debt obligations tied to crypto reserves
- Shifting institutional risk tolerance
Following news of the exit, ETHZilla’s stock price declined further, reflecting investor caution.
Analysts suggest Thiel’s decision may accelerate a reassessment of crypto treasury vehicles. Instead of passively holding digital assets, some firms are now exploring tokenization models and diversified blockchain ventures.
While Ethereum remains a cornerstone of the digital asset ecosystem, this development underscores how quickly institutional strategies can evolve when market conditions tighten.
