Peter Thiel and his venture firm Founders Fund have fully exited ETHZilla Corp. after the company sold 74.5 million dollars worth of ether. A filing with the U.S. Securities and Exchange Commission confirmed that Thiel affiliated entities no longer hold shares in the firm.
The divestment follows a series of ether sales by ETHZilla as it worked to manage debt and repurchase stock. At its peak, the company held more than 100,000 ETH, according to DefiLlama.
Market Downturn Adds Pressure
ETHZilla originally operated as 180 Life Sciences Corp. before pivoting in August to focus entirely on cryptocurrency treasury management. Based in Palm Beach, the firm rebranded and shifted its strategy to accumulating and holding ether, marking a dramatic departure from its biotech roots.
However, the transition came during a broader crypto market slump. Ether has dropped nearly 60 percent from last year’s high and was trading near 2,000 dollars at the time of reporting. The sharp decline placed immediate pressure on the company’s balance sheet and forced it to take steps to shore up liquidity.
In late October, ETHZilla sold about 40 million dollars in ether to buy back shares. In December, it liquidated another 74.5 million dollars worth of ETH to repay senior secured convertible notes, according to regulatory disclosures.
Expanding Into Asset Backed Ventures
The company has since launched a subsidiary called ETHZilla Aerospace, which plans to offer tokenized equity tied to leased jet engines. The initiative signals an effort to diversify beyond pure cryptocurrency exposure and move into real world asset backed products.
Although ETHZilla has not publicly addressed Thiel’s departure or its recent asset sales, analysts say the moves reflect the financial strain facing publicly traded crypto treasury firms. The situation highlights the caution among prominent investors during volatile market conditions and underscores the difficulty of maintaining large ether reserves during steep price swings.
Going forward, market participants will be watching the company’s aerospace venture and broader strategic direction for signs of how it plans to adapt in an evolving digital asset landscape.
