Billionaire investor Peter Thiel, through his Founders Fund entities, has completely divested his holdings in ETHZilla Corporation (NASDAQ: ETHZ), reducing his stake from 7.5% to 0% as of December 31, 2025, per a recent SEC Schedule 13G/A filing.Key Factors:
Background: ETHZilla (formerly 180 Life Sciences) rebranded in mid-2025 after raising $425 million to adopt an Ethereum treasury strategy, holding over 82,000 ETH at peak (inspired by MicroStrategy's Bitcoin model). Thiel's stake in August 2025 drove shares above $174.
Challenges & Pivot: ETH sales (e.g., $74.5 million in late 2025) for debt repayment and buybacks, amid Ethereum's underperformance vs. Bitcoin, led to a sharp decline (shares fell to $3.51). The firm shifted to real-world asset (RWA) tokenization via ETHZilla Aerospace, launching tokenized jet engine leases (Eurus Aero Token I on Arbitrum) for fractional ownership and 11% yields.
Market Reaction: Thiel's exit aligns with observations of waning confidence in pure ETH treasury plays. Shares dropped ~3% in after-hours trading following the filing disclosure.
Implications: Seen as a signal of shifting institutional sentiment toward Ethereum, though the company now focuses on revenue from tokenized aerospace and other assets (e.g., auto loans, real estate).
This development reflects rapid strategic changes in the crypto-treasury space. Investors should verify via official SEC filings and company updates, as markets evolve quickly...
