Catenaa, Saturday, February 28, 2026- Peter Thiel and affiliated Founders Fund entities have sold their entire stake in Ethereum treasury firm ETHZilla, according to a filing Tuesday with the US Securities and Exchange Commission, sending shares down nearly 7% in premarket trading.
The stock traded near $3.20 early Wednesday. That marks a 97% collapse from its $107 peak last August after the company shifted to a digital asset treasury model.
Thiel and Founders Fund Growth Management had disclosed a 7.5% stake in August 2025. The investment followed ETHZilla’s rebrand from 180 Life Sciences Corp. Shares surged more than 90% in one session after that backing became public.
ETHZilla launched its Ethereum treasury strategy on Aug. 18, 2025, after raising $565 million from more than 60 investors. Participants included Electric Capital, Polychain Capital and GSR. The firm positioned itself as a public vehicle for Ethereum exposure, using staking to generate yield.
In recent months, the company reversed course. It sold about $40 million in ether in October to finance a $250 million stock buyback. In December, it sold 24,291 ETH worth $74.5 million to redeem convertible notes.
The company is now pivoting toward tokenized real world assets. Earlier this month, it acquired 95 manufactured home loans for $4.7 million, planning to tokenize them on an Ethereum Layer 2 network. It also purchased two aircraft engines for tokenization through Liquidity.io.
ETHZilla holds 69,802 ETH valued near $139 million, ranking sixth among corporate Ethereum holders.
