In a move that could signal a broader shift in the crypto investment landscape, Peter Thiel’s Founders Fund has fully divested its stake in ETHZilla, formerly known as 180 Life Sciences Corp. The decision, detailed in a recent SEC filing, marks a significant retreat from a once-promising Ethereum-focused treasury strategy.
Entities linked to Thiel, which previously held a 7.5% stake in ETHZilla, now report zero shares in the company. The 13G amendment filed on Tuesday reveals that the group, which owned 11,592,241 shares worth about $40 million in early August 2025, has completely exited the position. This move follows a tumultuous period for ETHZilla, which raised $425 million in July 2025 to pivot its business model towards Ethereum and rebrand as ETHZilla.
ETHZilla’s Journey: From Biotech to Crypto
ETHZilla’s transformation from a biotech company to a crypto treasury was ambitious. The company’s plan to accumulate and deploy Ethereum across decentralized finance (DeFi) and tokenized assets seemed promising, especially as it aimed to hold more than 100,000 Ether. However, the volatile nature of the crypto market has put significant pressure on such strategies.
In December 2025, ETHZilla began liquidating its Ether holdings, selling 24,291 ETH for $74.5 million at an average price of $3,068.69 per token. This move was primarily to repay debt, leaving the company with about 69,800 ETH on its balance sheet. The decision to liquidate a portion of its holdings highlights the financial strain that ETHZilla and similar companies are facing in the current market environment.
The Broader Implications for Crypto Treasuries
Thiel’s exit from ETHZilla is not an isolated incident. It reflects a growing trend of public companies reassessing their strategies around crypto treasuries, particularly those heavily invested in Ethereum. Other major players in the space are taking divergent approaches, adding complexity to the market dynamics.
BitMine Immersion Technologies, the largest listed Ethereum holder, has continued to accumulate Ether, recently adding 40,613 ETH to its portfolio, bringing its total holdings to over 4.325 million ETH, worth approximately $8.8 billion at current prices. This strategy underscores the belief that Ethereum remains a strong long-term investment, despite short-term volatility.
On the other hand, Trend Research has taken a more cautious approach, unwinding its entire Ethereum position this month. The company sold 651,757 ETH for about $1.34 billion on February 8, realizing an estimated loss of $747 million. This move suggests that some investors are becoming more risk-averse in the current market conditions.
Diversification and Future Strategies
ETHZilla has attempted to diversify its portfolio by launching ETHZilla Aerospace, a subsidiary that offers tokenized exposure to leased jet engines. This move is part of a broader strategy to reduce reliance on volatile crypto assets and explore new revenue streams. However, Thiel’s exit from the company highlights the ongoing challenges and uncertainties in the crypto treasury model.
As the crypto market continues to evolve, the strategies of major players like Thiel and BitMine will be closely watched. The success or failure of these approaches will have significant implications for the future of crypto treasuries and the broader adoption of digital assets in institutional portfolios.
Conclusion
Peter Thiel’s decision to fully divest from ETHZilla underscores the volatile and unpredictable nature of the crypto market. While some companies like BitMine continue to bet big on Ethereum, others are taking a more cautious approach. As the market digests the lessons from the past year, the future of crypto treasuries remains uncertain. Investors and institutions will need to navigate this landscape carefully, balancing the potential rewards of digital assets with the inherent risks.
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