Nikolas Sargeant
Billionaire tech investor Peter Thiel's Founders Fund has fully exited Ether treasury company ETHZilla, according to a Tuesday Securities and Exchange Commission filing, as cryptocurrency treasury strategies face mounting pressure amid sustained market weakness.
Entities linked to Thiel now report owning zero shares in the company in a 13G amendment filed Tuesday, after disclosing a 7.5% stake on August 4, 2025. At that time, the group beneficially owned 11,592,241 shares of what was then known as 180 Life Sciences Corp., representing 7.5% of 154,032,084 outstanding shares and worth approximately $40 million based on trading around $3.50 per share in early August.
180 Life Sciences raised $425 million in July 2025 to launch an Ether treasury strategy and rebrand as ETHZilla. The company subsequently moved to raise another $350 million via convertible bonds in September to expand its Ether holdings and deploy them across decentralized finance and tokenized assets, at one point holding more than 100,000 Ether.
ETHZilla began liquidating tokens as markets deteriorated, selling 24,291 Ether for $74.5 million in December 2025 at an average price of $3,068.69 per token to repay debt, leaving approximately 69,800 ETH on its balance sheet. The forced selling reflects pressures facing leveraged cryptocurrency treasury strategies during extended market downturns.
Thiel's exit represents the latest stress signal for public companies with cryptocurrency treasuries built around Ether rather than Bitcoin. While Bitcoin treasury companies like Strategy (formerly MicroStrategy) have maintained aggressive accumulation despite market volatility, Ether-focused firms have faced more challenging conditions.
Other large Ether accumulators are adopting divergent strategies. BitMine Immersion Technologies, the largest listed Ethereum holder, acquired a further 40,613 ETH on February 9, lifting total holdings to more than 4.325 million ETH worth approximately $8.8 billion at current prices. The continued accumulation suggests BitMine maintains confidence in Ethereum's long-term positioning.
Trend Research, conversely, began unwinding its entire Ethereum position this month, selling 651,757 ETH for approximately $1.34 billion on February 8, locking in an estimated $747 million realized loss. The massive liquidation highlights how quickly treasury strategies can shift from accumulation to exit during adverse market conditions.
ETHZilla has attempted to diversify by launching ETHZilla Aerospace, a subsidiary offering tokenized exposure to leased jet engines. However, Thiel's exit underscores how volatile Ether-heavy treasury strategies have become in a market still processing last year's price peaks and subsequent correction.
The divergent approaches among Ether treasury companies reflect uncertainty about optimal strategies during extended market weakness. While some firms view current prices as accumulation opportunities, others are reducing exposure amid concerns about further downside or liquidity pressures from debt obligations.
