Founders Fund Dumps ETHZilla Stake Amid Ether Treasury Pressures
Prominent billionaire investor Peter Thiel’s venture capital firm, Founders Fund, has completely divested from Ether treasury firm ETHZilla, as revealed in a recent filing submitted to the United States Securities and Exchange Commission on Tuesday.
Affiliated entities connected to Thiel currently indicate ownership of zero shares in ETHZilla through a Schedule 13G amendment submitted on February 17, marking a full exit from their prior position. This follows their earlier disclosure on August 4, 2025, of holding a substantial 7.5% stake in the company.
During that initial revelation, the investment group controlled 11,592,241 shares of the entity then operating as 180 Life Sciences Corp. This stake constituted 7.5% of the total 154,032,084 outstanding shares, with a valuation approximating $40 million. The figure was derived from market trading levels hovering around $3.50 per share in the early August period.
Image: Screenshot from the Founders Fund’s Schedule 13G filing submitted to the SEC.
ETHZilla’s Transition from Biotech to Ether-Focused Treasury
Originally known as 180 Life Sciences, the company underwent a significant pivot by securing $425 million in funding during July 2025. This capital infusion enabled the launch of an ambitious Ether treasury initiative, culminating in a full rebranding to ETHZilla.
Building on this momentum, ETHZilla pursued additional financing in September, raising another $350 million through convertible bonds. The proceeds were earmarked for bolstering its Ether reserves and strategically deploying them into decentralized finance protocols and tokenized asset opportunities. At its peak, the firm’s holdings exceeded 100,000 Ether, underscoring its aggressive accumulation strategy in the cryptocurrency space.
Market Shifts Prompt ETHZilla’s Ether Liquidations
As cryptocurrency market conditions deteriorated, ETHZilla initiated sales of its Ether tokens. In December 2025, the company liquidated 24,291 Ether, generating $74.5 million at an average selling price of $3,068.69 per token. These proceeds were primarily used to settle outstanding debts, reducing its remaining Ether balance to approximately 69,800 ETH.
Challenges Facing Ether-Centric Corporate Treasury Models
The complete withdrawal by Thiel’s Founders Fund represents yet another indicator of mounting pressures on publicly traded companies that have constructed their treasuries predominantly around Ether, in contrast to more Bitcoin-focused strategies.
Among other major Ether holders, responses to market volatility have varied widely. For instance, BitMine Immersion Technologies, recognized as the largest publicly listed Ethereum accumulator, continued its buying spree by acquiring an additional 40,613 ETH on February 9. This move elevated its total stash to over 4.325 million ETH, currently valued at roughly $8.8 billion based on prevailing market rates.
In a contrasting move, Trend Research opted to dismantle its entire Ethereum portfolio this month. On February 8, it offloaded 651,757 ETH, fetching approximately $1.34 billion and crystallizing an estimated realized loss of $747 million.
ETHZilla, meanwhile, has sought to mitigate risks through diversification efforts, including the establishment of ETHZilla Aerospace. This new subsidiary provides tokenized investment opportunities tied to leased jet engines, aiming to tap into real-world asset sectors. Nevertheless, Thiel’s decisive exit underscores the heightened volatility and unpredictability inherent in treasury strategies overly reliant on Ether, particularly as the broader market continues to grapple with the aftermath of last year’s all-time highs.
