Peter Thiel Cuts Ties With ETHZilla as Treasury Firms Face Mounting Pressure
Billionaire enterprise capitalist and co-founder of PayPal and Palantir Technologies, Peter Thiel’s Founders Fund, has absolutely divested from ETHZilla, a digital asset treasury agency that holds Ethereum (ETH).
The growth comes as digital asset treasury corporations face mounting strain amid the broader crypto market downturn.
Peter Thiel Cuts Ties With ETHZilla During Crypto Market Slump
The digital asset treasury wave gained momentum final yr, with a number of corporations adopting Strategy’s (previously MicroStrategy) 2020 Bitcoin (BTC) playbook. Firms began accumulating cryptocurrencies as reserve property, attracting heightened investor consideration as prices climbed and equity valuations expanded.
BeInCrypto reported in August 2025 that via entities such as The Founders Fund, Thiel managed a 7.5% stake in ETHZilla. However, the most recent SEC submitting reveals that entities managed by Thiel reported zero possession within the firm by the tip of 2025, indicating an entire exit.
“This issues as a result of Thiel is taken into account good institutional capital, and a full exit from an ETH treasury agency may sign shifting sentiment, threat discount, or a strategic rotation away from Ethereum publicity,” Crypto Town Hall posted.
The transfer comes towards the backdrop of a broader market downturn. In October, crypto markets suffered a sharp downturn, typically referred to as the “10/10” or “Black Friday” crash. The subsequent months prolonged the decline.
According to CryptoRank data, Ethereum fell 28.4% in This autumn 2025, marking its first unfavourable fourth quarter since 2022. Although 2026 started with a quick restoration, the rebound shortly reversed.
ETH closed January 2026 down 17.7%, and to this point in February, its price has declined another 18.1%. At press time, it traded at $2,017.
Treasury Strategy Under Strain as Ethereum Decline Hits Corporate Holders
The sustained worth weak spot has immediately impacted digital asset treasury corporations, lowering the worth of their crypto holdings and pressuring stock prices. For instance, BitMine is at the moment sitting on unrealized losses exceeding $7 billion. Furthermore, its share worth 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 comparable 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. Toward the tip of that month, ETHZilla offloaded roughly $40 million in Ether, directing the proceeds towards share buybacks.
A second spherical of sales followed in December, totaling about $74.5 million. The funds had been allotted to repay senior secured convertible debt. CoinGecko data reveals the corporate now holds 69,802 ETH, a considerable discount from its earlier peak place.
The firm has since outlined yet one more strategic shift. According to 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.
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