Peter Thiel-Backed ETHZilla Dumps $74.5M in ETH, Abandons Treasury Strategy – What Went Wrong?
Peter Thiel-backed ETHZilla has begun unwinding a technique that after positioned it among the many most aggressive company holders of Ethereum (ETH), promoting $74.5 million value of ETH and indicating a transparent shift away from a pure crypto treasury mannequin.
In a regulatory submitting late Friday, the Nasdaq-listed firm said it offered 24,291 ETH at a median value of about $3,068, elevating roughly $74.5 million.
The proceeds are getting used to redeem excellent senior secured convertible notes, with early redemptions scheduled for Dec. 24 and Dec. 30.
Following the sale, ETHZilla’s holdings fell to about 69,800 ETH, valued at simply over $200 million at present costs.
The firm stated money already on its stability sheet would even be used to finish the redemptions.
Alongside the sale, ETHZilla introduced it will discontinue its modified internet asset worth, or mNAV, dashboard, which had been used to trace the connection between its market capitalization and the worth of its ETH holdings.
Management stated future disclosures would deal with stability sheet updates, income progress, and money move from its real-world asset tokenization enterprise, marking a shift in messaging and priorities.
The transfer comes as ETHZilla’s inventory continues to slip. Shares had been down about 4% on Monday and have fallen roughly 96% from their August highs, leaving the corporate buying and selling nicely under the worth of its remaining crypto property.
The company started its accumulation in late July, however earlier in the fourth quarter, ETHZilla offered one other $40 million value of ETH to fund share repurchases.
However, the inventory has continued to weaken, now buying and selling under $7 in contrast with round $20 when the buyback was introduced.
ETHZilla Caught on the Wrong Side of Ethereum’s Cycle
ETHZilla’s retreat displays broader strain throughout the digital asset treasury sector. Many public corporations that rushed so as to add crypto to their stability sheets in the course of the summer season rally are actually buying and selling at steep reductions to the web asset worth of their holdings.
That disconnect has restricted their potential to lift recent capital and, in some instances, pressured them to promote crypto to handle debt and liquidity moderately than accumulate extra.
For ETHZilla, the issue was much less about Ethereum itself and extra about timing and focus. The firm constructed most of its ETH place close to market cycle highs.
Its largest buy got here on Aug. 12, when it acquired greater than 82,000 ETH at a median value of $3,807, committing over $300 million.
Additional buys later in August had been made at even increased costs, pushing the blended price foundation nicely above long-term assist ranges. Smaller purchases in September did little to offset that publicity.
When Ethereum reversed, falling greater than 28% over the previous three months to round $2,980, the technique shortly moved underwater.
By the time ETHZilla started trimming its holdings in late October, losses had been already embedded. The firm now faces unrealized losses tied to its earlier accumulation.
Corporate ETH Holdings Face Pressure as Losses Grow – Who Will Survive?
ETHZilla just isn’t alone, as different main Ethereum treasury companies are additionally beneath pressure.
BitMine Immersion Technologies, the biggest company holder of ETH, is estimated to be sitting on billions of {dollars} in unrealized losses however has continued to build up and construct a staking-focused enterprise.
SharpLink Gaming, backed by Ethereum co-founder Joseph Lubin, stays dedicated to its ETH technique regardless of market strain, whereas companies corresponding to Fundamental Global, The Ether Machine, and Quantum Solutions are additionally holding ETH under their common buy costs.
At the identical time, demand from company treasuries has slowed sharply. Data from Bitwise shows corporations purchased simply 370,000 ETH in November, down greater than 80% from August’s peak.
DefiLlama data additionally factors to November because the weakest month of 2025 for digital asset treasury inflows, with Ether seeing internet outflows at the same time as Bitcoin treasuries continued to draw capital.
The publish Peter Thiel-Backed ETHZilla Dumps $74.5M in ETH, Abandons Treasury Strategy – What Went Wrong? appeared first on Cryptonews.
