Peter Thiel’s Founders Fund Exits ETHZilla in Full Divestment

Venture capital firm Founders Fund, backed by billionaire investor Peter Thiel, reported holding zero shares in crypto treasury company ETHZilla by the end of 2025, according to recent filings with the Securities and Exchange Commission. The disclosure marks a complete exit from a position that stood at roughly 7.5% as recently as August.

Ether Treasury Strategy Unravels After Market Peak

Based in Palm Beach, ETHZilla pivoted from a struggling biotech business into an Ethereum-focused treasury model, at one point accumulating more than 100,000 ETH. However, after digital asset markets peaked in October, the firm sold approximately $40 million worth of Ether for share buybacks and an additional $74.5 million in December to reduce debt tied to convertible notes.

Digital Asset Treasury Firms Face Investor Skepticism

Companies centered solely on token accumulation have struggled to maintain investor confidence amid volatile crypto cycles. Reports indicate ETHZilla is now exploring another strategic shift, including plans to spin out an aerospace venture offering tokenized exposure to leased jet engines.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.