Peter Thiel Fully Divests from ETHZilla: Major Exit Amid 98% Stock Plunge in Ethereum Treasury Play
Key Tickers:
- ETH-USD: -2.31% (recent trading around $1,965)
- ETHZ (NASDAQ: ETHZ): +3.13% (current price ~$3.62, post-split adjusted)
Billionaire venture capitalist Peter Thiel, through his Founders Fund entities, has completely liquidated his position in ETHZilla Corporation, a publicly traded company focused on holding Ethereum as a primary treasury asset. Recent SEC filings confirm that Thiel’s holdings dropped to zero shares by the close of Q4 2025, marking a full withdrawal from the once-promising “Ethereum treasury” model.
This departure follows a steep valuation collapse for ETHZilla shares, which have shed roughly 98% from their adjusted peak of $174.60 in August 2025—when Thiel’s initial stake disclosure sparked significant market enthusiasm. Adjusted for a 1-for-10 reverse stock split in October, the stock now hovers near $3.62, far underperforming broader cryptocurrency trends.
In comparison, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has declined approximately 61% from its August 2025 all-time high near $4,946, recently trading in the $1,900–$1,970 range amid ongoing market pressures.
ETHZilla originally pivoted from its prior identity as a biotech entity to amass a substantial Ethereum reserve, positioning itself as a corporate holder similar to Bitcoin treasury strategies. Following Thiel’s entry announcement, the company pursued aggressive maneuvers to support shareholder value and expand within the Ethereum network.
These included launching a $250 million share repurchase initiative in late summer 2025 to stabilize the stock during early declines. Later, ETHZilla sold portions of its ETH holdings—approximately $40 million worth—to finance further buybacks while attempting to diversify operations.
More recently, the firm has shifted focus toward real-world asset (RWA) tokenization on Ethereum. Last week, it introduced tokenized equity tied to over $12 million in leased commercial jet engines, providing accredited investors blockchain-based exposure to steady lease income streams from partnerships with major U.S. carriers. Future plans reportedly include similar offerings for manufactured home financing and automotive loans, capitalizing on Ethereum’s growing role in tokenized assets.
ETHZilla representatives declined to address specifics regarding Thiel’s divestment, stating they do not comment on or speculate about external investors’ portfolio choices.
The pullback extends beyond ETHZilla. Filings indicate Thiel and affiliated entities also trimmed exposure to BitMine Immersion Technologies (BMNR), another prominent Ethereum-focused treasury and mining company. Thiel’s stake in BMNR fell from over 5 million shares in mid-2025 to half that by September, with additional reductions from related funds. BMNR shares have similarly struggled, dropping nearly 64% in recent months to trade around $19.86.
Thiel’s complete exit from ETHZilla underscores challenges facing Ethereum-centric corporate treasury approaches in a volatile crypto environment. While the strategy drew early attention amid hopes of institutional adoption, sustained price weakness in ETH has amplified risks for leveraged or concentrated holdings.
Investors continue monitoring whether ETHZilla’s pivot to diversified tokenization—leveraging Ethereum’s infrastructure for real-world yields—can restore confidence and reverse fortunes in this evolving sector.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.