Billionaire investor Peter Thiel and his venture capital firm, Founders Fund, have fully divested their stake in ETHZilla, an Ethereum treasury management company. This significant move was disclosed through a recent filing with the U.S. Securities and Exchange Commission (SEC), indicating that as of December 31, 2025, Founders Fund no longer holds any shares in ETHZilla.
Previously, Thiel”s entities owned around 7.5 percent of the firm, a stake that had garnered considerable attention in the media and investment circles. The initial investment had a notable impact, driving up ETHZilla”s stock price considerably during mid-2025. However, the ongoing volatility within the cryptocurrency market and a decline in the price of ether have adversely affected the company”s financial standing.
In a bid to stabilize its operations, ETHZilla conducted targeted sales of its ether holdings, reportedly liquidating approximately $74.5 million worth to address outstanding debts in late 2025. SEC filings confirm that Founders Fund no longer holds beneficial ownership of ETHZilla shares, emphasizing the influence of high-profile investors on market dynamics.
The market reacted swiftly to Thiel”s full divestment, with ETHZilla”s stock price dropping by about three percent in after-hours trading. This decline reflects the heightened sensitivity among investors to the exits of major stakeholders in crypto-related firms. The year-to-date performance of ETHZilla”s stock has shown a significant drop from previous highs, underlining the challenges the firm faces.
Originally established with a focus on biotechnology, ETHZilla shifted its strategy to Ethereum treasury management in mid-2024. This pivot included accumulating substantial holdings of ether as part of its treasury strategy. Moreover, the firm expanded its operations into the tokenization of real-world assets, venturing into initiatives involving housing loans and aerospace tokens during a challenging market environment.
Despite the loss of prominent backers, ETHZilla continues to operate, navigating the complexities of market sentiment and price fluctuations. Market participants are now closely monitoring institutional sentiment towards crypto treasuries, as the exit of marquee investors often sends ripples through the crypto investment landscape.
