Billionaire investor Peter Thiel’s Founders Fund has fully divested its stake in Ether-focused treasury firm ETHZilla, according to a new filing with the US Securities and Exchange Commission.
A 13G amendment submitted Tuesday shows Thiel-linked entities now hold zero shares in the company. Just months earlier, in August 2025, Founders Fund had disclosed a 7.5% ownership stake in what was then known as 180 Life Sciences Corp., amounting to more than 11.5 million shares valued at roughly $40 million at the time.
Earlier coverage: Ethereum Treasury Firm Bitmine Surpasses 4 Million ETH After Latest Purchase
The abrupt reversal comes as publicly traded firms built around Ether treasury strategies grapple with volatile markets and shifting investor sentiment.
From biotech to Ether bet
180 Life Sciences rebranded to ETHZilla in July 2025 after raising $425 million to pursue an Ether treasury strategy. The pivot positioned the company among a growing cohort of public firms seeking to emulate Bitcoin treasury models — but centered on Ethereum.
In September, ETHZilla announced plans to raise an additional $350 million through convertible bonds to expand its Ether holdings and deploy capital into decentralized finance and tokenized assets. At its peak, the company held more than 100,000 ETH.
But the strategy soon ran into turbulence. As crypto markets cooled, ETHZilla began trimming its position. In December 2025, the firm sold 24,291 ETH for $74.5 million at an average price of $3,068.69 to reduce debt exposure, leaving roughly 69,800 ETH on its balance sheet.
Treasury models under pressure
Thiel’s exit adds to signs of stress among Ether-heavy corporate treasuries. While Bitcoin treasury strategies have gained institutional legitimacy, Ether-based models have faced greater volatility and less consistent narrative support.
Not all companies are retreating. BitMine Immersion Technologies recently added more than 40,000 ETH to its holdings, bringing its total above 4.3 million ETH. Meanwhile, Trend Research has moved in the opposite direction, liquidating over 650,000 ETH and locking in a substantial realized loss.
ETHZilla has attempted to broaden its strategy beyond crypto accumulation, launching a subsidiary focused on tokenized exposure to leased jet engines. Even so, Founders Fund’s complete divestment underscores investor caution toward highly concentrated Ether treasury bets in a still-fragile market environment.