Peter Thiel and Founders Fund Exit ETHZilla per SEC Filing and Shares Fall

TLDR

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SEC filing shows Thiel and affiliates no longer own ETHZilla shares.
ETHZilla stock fell nearly 7% to about $3.20 in premarket trading.
Company sold over $114 million in ETH since October 2025.
ETHZilla now holds 69,802 ETH worth about $139 million.

Peter Thiel and Founders Fund have exited their entire stake in Ethereum treasury firm ETHZilla, according to a new SEC filing. The move ends a high-profile investment that once drove the company’s shares to record levels.

A Schedule 13G filing submitted late Tuesday shows that Thiel and affiliated entities no longer hold shares in ETHZilla. The disclosure comes as the company shifts focus from ether accumulation to real-world asset tokenization.

Peter Thiel and Founders Fund Exit ETHZilla Stake

Peter Thiel and affiliated Founders Fund entities have fully divested their 7.5% stake in ETHZilla. The exit was disclosed in a Schedule 13G filing with the U.S. Securities and Exchange Commission.

The filing was submitted late Tuesday and confirmed that the entities no longer beneficially own shares. Thiel had invested through Founders Fund Growth Management and related vehicles.

https://twitter.com/grok/status/2024076801689919971?s=20

ETHZilla shares declined nearly 7% in premarket trading following the disclosure. The stock traded near $3.20, according to Yahoo Finance data.

The current price marks a sharp fall from its peak above $107 in August 2025. That rally followed news of Thiel’s initial investment in the firm.

From Biotech Rebrand to Ethereum Treasury Strategy

ETHZilla was formerly known as 180 Life Sciences Corp., a biotech company. It rebranded and shifted to a digital asset treasury model in August 2025.

On Aug. 18, 2025, the firm launched its Ethereum treasury strategy after raising $565 million. The company said it aimed to become a “premier Ethereum-focused accumulation vehicle.”

The capital raise included more than 60 investors. Participants included Electric Capital, Polychain Capital, and GSR.

Following disclosure of Thiel’s 7.5% stake, shares rose more than 90% in a single session. The company’s market value increased sharply during that period.

ETHZilla positioned itself as a public market vehicle offering direct exposure to ether. It also planned to generate yield through staking activities.

Ether Sales and Balance Sheet Adjustments

Despite its initial strategy, ETHZilla has reduced its ether holdings in recent months. The company completed several large sales since October 2025.

In October, ETHZilla sold about $40 million worth of ether. The proceeds supported a $250 million stock repurchase plan authorized by its board.

In December, the firm sold 24,291 ETH valued at $74.5 million at the time. The funds were used to redeem senior secured convertible notes.

These transactions marked a shift from accumulation to asset sales. The company has also signaled a broader change in business direction.

ETHZilla currently holds 69,802 ETH. At current market prices, the holdings are valued at approximately $139 million.

According to data from The Block, ETHZilla ranks as the sixth-largest corporate holder of Ethereum. Industry leader Bitmine Immersion Technologies holds more than 4.3 million ETH.

Pivot to Real World Asset Tokenization

In December, ETHZilla said future value would be driven by revenue and cash flow from its RWA tokenization business. The company has since pursued several related transactions.

On Feb. 5, ETHZilla acquired 95 manufactured and modular home loans for about $4.7 million. The loans are expected to be tokenized on an Ethereum Layer 2 protocol.

The company projects an annualized yield of 10.36% from that portfolio. The tokenized assets are designed to generate income for investors.

ETHZilla also purchased two CFM56-7B24 aircraft engines. These assets will be tokenized through Liquidity.io, an SEC-regulated alternative trading system.

The company’s strategic shift comes as Thiel and Founders Fund exit their position. The SEC filing formalizes the end of their involvement in ETHZilla’s equity.