- Thiel’s complete ETHZilla exit signals shrinking confidence in crypto treasury equity models.
- ETHZilla’s ETH liquidations highlight mounting balance sheet strain amid weaker market demand.
- Cooling risk appetite shows investors now favor stability over leveraged Ethereum proxy exposure.
Peter Thiel and his venture firm, Founders Fund, have fully exited ETHZilla Corporation, according to newly filed disclosures. The Schedule 13G amendment shows the group reduced its ownership from 7.5% to 0% by December 31, 2025. The filing confirms that each reporting entity now holds zero shares. Consequently, the once sizable position has disappeared from the firm’s public equity portfolio.
The amended filing, submitted on February 17, 2026, lists multiple affiliated entities under Thiel’s control. Each reported 0.00 shares and 0.0% beneficial ownership.
From Strategic Bet to Full Exit
Founders Fund first disclosed its 7.5% stake during a surge in crypto treasury stocks last August. At that time, ETHZilla shares traded near $107, marking an all-time high.
Investors rushed into digital asset treasury companies that mirrored leveraged crypto accumulation models. Moreover, enthusiasm around Ethereum exposure fueled aggressive buying across similar firms.
However, sentiment shifted sharply in the following months. Digital asset treasury stocks began losing momentum as token prices fluctuated. Additionally, rising debt burdens pressured balance sheets.
ETHZilla responded by selling $40 million worth of Ether in October. It later liquidated another $74.5 million in December to reduce convertible note obligations.
Broader Cooling in Crypto Treasuries
ETHZilla previously operated as 180 Life Sciences before pivoting into an Ethereum-focused treasury strategy. The firm accumulated more than 100,000 ETH at its peak.
Significantly, that strategy resembled the Bitcoin accumulation model popularized by Strategy. Consequently, investors viewed ETHZilla as a proxy for Ether exposure.
Nevertheless, the broader digital asset treasury trend has cooled. Companies that relied heavily on token appreciation now face tighter capital markets. Moreover, declining equity prices reduced their ability to raise fresh funds. Thiel’s exit underscores that shift in risk appetite.
Related: Peter Thiel Dumps Entire Nvidia Stake — What It Signals for Crypto, Bitcoin ETFs and AI Tokens
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Source: https://coinedition.com/peter-thiel-exits-ethzilla-cuts-7-5-stake-to-zero/