Billionaire investor Peter Thiel has sold his entire position in Ethereum treasury firm ETHZilla, marking a complete departure from the company he backed in 2025.
Background on Thiel’s Investment
Peter Thiel, co-founder of PayPal and Palantir Technologies, invested in ETHZilla through his venture capital firm, Founders Fund. In August 2025, entities managed by Thiel disclosed a 7.5% stake in the firm, then known as 180 Life Sciences before its pivot to an Ethereum treasury strategy.
ETHZilla, a publicly traded company on Nasdaq under the ticker ETHZ, focused on accumulating Ether as a core asset. At its peak, it held over 100,000 ETH, valued at hundreds of millions of dollars. The investment was seen as a vote of confidence in corporate Ethereum holdings, boosting the stock price significantly at the time.
Details of the Stake Sale
Thiel’s exit was confirmed in a Schedule 13G filing with the U.S. Securities and Exchange Commission, released on February 17, 2026. The document shows that Thiel-affiliated entities reported zero ownership in ETHZilla as of December 31, 2025. This represents a full divestment from the 7.5% stake acquired earlier that year. Founders Fund did not provide public comments on the reasons for the sale. The news broke amid broader pressures on digital asset treasuries, with Ethereum prices down about 60% from 2025 highs.
ETHZilla’s Business Shifts
ETHZilla began as a biotechnology firm but rebranded in August 2025 to pursue an Ethereum treasury model, partnering with firms like Electric Capital for yield generation through staking and lending. By late 2025, it sold portions of its ETH holdings, including $74.5 million to repay debt in December.
The company has since pivoted toward real-world asset tokenization, acquiring jet engines for $12.2 million in January 2026 and tokenizing them on the Arbitrum network. It also tokenized a $4.7 million portfolio of home loans. As of February 18, 2026, ETHZilla holds about 69,802 ETH, worth roughly $139 million.
Market Reaction to the Exit
ETHZilla shares fell 3% to 5% in after-hours trading on February 17, 2026, following the filing’s release, and are down 28% year-to-date. The stock has declined about 97% from its August 2025 peak.
Analysts view Thiel’s departure as a signal of caution in Ethereum treasury strategies, especially with the firm’s shift to tokenized assets like aircraft engines and housing loans. Social media discussions, including posts on X, highlighted the move as a potential warning for corporate crypto accumulations.
Thiel’s stake sale raises questions about the sustainability of Ethereum treasury firms in volatile markets. While ETHZilla continues its tokenized assets push, the exit underscores strategic reallocations by high-profile investors. Thiel remains active in tech and crypto, but this divestment reflects broader trends in digital asset management.
