Peter Thiel Dumps ETHZilla Stake After Crypto Treasury Collapse

Background on ETHZilla

ETHZilla, formerly known as 180 Life Sciences, rebranded in 2025 to build a corporate treasury centered on Ethereum. The company raised approximately $425 million to accumulate ETH, positioning itself as a public-market proxy for Ethereum exposure. At its peak, the strategy attracted high-profile investors including Peter Thiel’s Founders Fund, which acquired a 7.5% stake.

The firm’s stock surged during the 2025 Ethereum rally as institutional interest in crypto treasuries increased. However, ETHZilla’s balance sheet remained heavily exposed to ETH price volatility. As Ethereum declined significantly from its 2025 highs, the company faced liquidity pressure and mounting debt obligations.

Peter Thiel Dumps ETHZilla Stake Following SEC Filing

Peter Thiel dumps ETHZilla stake according to a Schedule 13G amendment filed with the U.S. Securities and Exchange Commission. The filing showed Thiel-linked entities reduced their holdings from over 11 million shares to zero by the end of 2025.

The disclosure triggered a drop in ETHZilla’s stock price during after-hours trading. The sale likely locked in significant losses given the firm’s share price decline from over $100 in 2025 to under $3 by early 2026.

The exit marks a reversal from Thiel’s earlier support for ETHZilla’s treasury model and signals a shift in institutional appetite for single-asset crypto treasury strategies.

ETHZilla Treasury Collapse and Forced ETH Sales

The company’s crypto treasury came under pressure as Ethereum prices declined roughly 60% from their 2025 peak levels. ETHZilla sold tens of millions of dollars worth of ETH to repay outstanding debt obligations, weakening its balance sheet further.

The forced sales increased market pressure and reduced investor confidence in the firm’s strategy. Analysts described the approach as overly concentrated and lacking hedging mechanisms.

As the stock fell more than 90% from its highs, ETHZilla’s treasury model came under scrutiny as an example of the risks associated with corporate exposure to volatile digital assets.

ETHZilla Pivot to Tokenized Assets After Thiel Exit

Following the treasury collapse, ETHZilla announced a pivot toward tokenized real-world assets, including jet engine lease financing structured on blockchain infrastructure. The move was presented as a diversification strategy beyond pure crypto exposure.

Market reaction to the pivot has been mixed, with some observers viewing it as an attempt to stabilize operations while others questioned its long-term viability. The absence of continued backing from early investors has added to skepticism around the transition.

The shift reflects a broader trend of crypto-adjacent firms exploring tokenized asset models as a hedge against digital asset volatility.