Peter Thiel’s Founders Fund has fully divested its stake in Ethereum treasury firm ETHZilla, marking a notable shift in institutional crypto strategy.
Tech billionaire Peter Thiel and his venture capital firm, Founders Fund, have fully exited their investment position in the Ethereum treasury company ETHZilla, according to a recent filing with the U.S. Securities and Exchange Commission.
The SEC disclosure shows that, as of December 31, 2025, Founders Fund entities no longer hold any shares in ETHZilla, a significant reversal from their initial stake of roughly 7.5 percent, first reported in August 2025.
ETHZilla, which rebranded from a biotech firm to an Ethereum-focused treasury strategy, saw its stock appreciate sharply after Thiel’s initial involvement. However, the company’s share price has since slumped, and the full divestment triggered further downward pressure on the stock.
The exit underscores changing investor sentiment toward cryptocurrency treasury models built around Ether (ETH). At its peak, ETHZilla held more than 100,000 ETH as a corporate asset, but market volatility and strategic shifts have challenged high-leverage crypto treasury approaches.
In addition to the complete sale of shares, ETHZilla itself has been adjusting its business model, including selling portions of its Ethereum holdings and exploring tokenization of real-world assets such as jet engines and home loans through a subsidiary.
Thiel’s move is seen by some analysts as part of a broader recalibration of institutional crypto exposure, particularly in areas that had once attracted strong early backing but later faced market headwinds and strategic uncertainty.
Reports are sourced from official documents, law-enforcement updates, and credible investigations.
Discover additional reports, market trends, crime analysis and Harm Reduction articles on DarkDotWeb to stay informed about the latest dark web operations.
