Peter Thiel’s Founders Fund Exits ETHZilla as Treasury Firms Struggle

Peter Thiel’s Founders Fund has fully divested from ETHZilla, the digital-asset treasury firm that holds Ethereum. Earlier filings showed Thiel-controlled entities held a 7.5% stake, but a later SEC filing reported zero ownership by the end of 2025. The move comes amid a broader market downturn that intensified after October’s sharp crash.

CryptoRank data show Ethereum fell 28.4% in Q4 2025; it closed January 2026 down 17.7%, lost a further 18.1% in February, and was trading at $2,017 at the time of the report. Treasury-focused companies have felt the pressure. BitMine is carrying unrealized losses of more than $7 billion and its share price is down 25.7% year-to-date.

ETHZilla, which rebranded from 180 Life Sciences and once held over 100,000 ETH, trimmed exposure as conditions worsened—selling about $40 million of Ether in October and roughly $74.5 million in December to fund buybacks and repay senior secured convertible debt.

United States

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