Peter Thiel, acting alongside entities affiliated with technology investor Founders Fund, has divested his entire 7.5% stake in Ethereum treasury company ETHZilla. A 13G filing with the US Securities and Exchange Commission (SEC) formalized the divestment.
The news of the sale had a sharp impact on the share price before the market opened. ETHZilla shares fell approximately 7% to around $3 in pre-market trading. This represents a loss of about 97% compared to the peak of over $107 seen when the company announced its transition to a digital asset treasury model last August.
From biotech to Ethereum treasury
The company restructured in August 2025, dropping the name 180 Life Sciences Corp. and becoming ETHZilla. At the same time, Thiel and affiliates, including Founders Fund Growth Management, acquired a 7.5% stake, a development that boosted the share price by more than 90% in a single session. ETHZilla officially launched its Ethereum treasury strategy on August 18, 2025, following a $565 million capital increase. The company positioned itself as an "Ethereum-focused accumulation vehicle," aiming to offer direct ETH exposure to public market investors and generate additional returns through staking. Over 60 investors, including Electric Capital, Polychain Capital, and GSR, participated in this funding round. However, a significant shift in the company's strategy has been observed in recent months. The rhetoric of accumulating ETH has given way to asset sales. In October, approximately $40 million worth of ETH was sold; this was reportedly used to finance a $250 million share buyback program approved by the board.
In December, the company sold another 24,291 ETH to redeem its outstanding collateralized convertible bonds. The value of this sale at the time was $74.5 million. Thus, the company significantly reduced its Ether holdings in a short period.
Focus on RWA Tokenization
In a statement in December, ETHZilla management emphasized that the company's future value would be shaped by revenue and cash flow growth from its RWA (real-world asset) tokenization business. Several steps have been taken in this regard in recent weeks.
On February 5th, the company purchased a portfolio of 95 prefabricated and modular housing loans for approximately $4.7 million. These assets are planned to be tokenized on an Ethereum Layer 2 protocol; the targeted annual yield rate is stated as 10.36 percent. In addition, the company purchased two CFM56-7B24 aircraft engines to be tokenized through the Liquidity.io platform. This platform operates as an alternative transaction system subject to SEC regulation.
Sixth Place in Ethereum Reservations
According to current data, ETHZilla ranks sixth among institutional Ethereum holders. The company holds 69,802 ETH; the current market value of this amount is approximately $139 million. Bitmine Immersion Technologies, a sector leader, holds 4,371,497 ETH, representing approximately $8.7 billion. In total, the top 10 Ethereum treasury companies hold 6,101,560 ETH, corresponding to a market capitalization exceeding $12 billion. Peter Thiel's complete departure coincides with a period where confidence in ETHZilla's Ethereum-focused treasury model is being questioned. The company's new focus on RWA tokenization appears likely to be a key factor in investors' performance expectations in the coming period.
