Peter Thiel, the billionaire venture capitalist who co-founded PayPal and Palantir Technologies, and his Founders Fund have completely divested from ETHZilla, a firm that holds Ethereum as its core treasury asset, according to a new SEC filing.
Founders Fund reported acquiring a 7.5% stake in ETHZilla last August. The investor group also disclosed holding over 9% of BitMine Immersion, the largest Ethereum treasury firm.
The group sold their entire stake in ETHZilla, liquidating all 11.6 million shares as of Dec. 31, 2025. Their departure marks a reversal from an earlier position that had been viewed as a vote of confidence in corporate Ethereum strategies.
ETHZilla’s stock fell 5% in after-hours trading and has declined 28% since the start of the year, per Yahoo Finance.
The company faces major financial headwinds, including negative operating margins and an Altman Z-Score of -0.54, a metric indicating elevated bankruptcy risks over the next two years.
Formerly known as 180 Life Sciences Corp, the firm pivoted from biotechnology to an Ethereum-focused treasury model in mid-2024. It recently pivoted again, launching ETHZilla Aerospace to offer tokenized equity in leased jet engines.
