Peter Thiel’s founding fund abandons stake in ETHZilla amid pressure on ETH treasury bonds

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Billionaire Peter Thiel’s founding fund has completely exited treasury company ETHZilla, according to a Tuesday filing with the U.S. Securities and Exchange Commission (SEC).

Entities now associated with Thiel report owning zero shares in the company in the 13G amendment filed on Tuesday after disclosure 7.5% of shares on August 4, 2025.

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At the time, the group owned 11,592,241 shares of the company then known as 180 Life Sciences Corp., representing 7.5% of the 154,032,084 shares outstanding and worth approximately 40 million dollars based on early August trading at approximately $3.50 per share.

13G Founders Fund Filing with the SEC. Source: SIN

180 Life Sciences changes its name to ETHZilla

In July 2025, 180 Life Sciences raised $425 million to launch its Ether treasury strategy and rename itself ETHZilla.

The company later raised another $350 million via convertible notes in September to expand its Ether (ETH) holdings and deploy them in decentralized finance (DeFi) and tokenized assets, at one point holding over 100,000 Ether.

Related: Bitmine’s stake in Ether indicates $164 million in annual staking revenue

ETHZilla began offloading tokens as markets changed, liquidating 24,291 Ether for $74.5 million in December 2025 at an average price of $3,068.69 per token to pay off debt, leaving approximately 69,800 ETH on its balance sheet.

Ether treasury company models load

Thiel’s departure is the latest sign of stress for public companies with cryptocurrency vaults built around Ether rather than Bitcoin (BTC).

Other immense ether batteries take a different approach. BitMine Immersion Technologies, the largest listed Ethereum holder, acquired another 40,613 ETH on February 9, bringing its total holdings to over 4.325 million ETH, worth approximately $8.8 billion at current prices.

On the other hand, Trend Research began to expand its entire position in Ethereum this month, selling 651,757 ETH for approximately $1.34 billion on February 8, closing an estimated amount $747 million realized loss.

ETHZilla has since attempted to diversify its business by launching ETHZilla Aerospace, a subsidiary offering tokenized exposure to leased jet engines. But Thiel’s departure adds volatility to ether-based Treasury strategies in a market still digesting last year’s high.

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