Billionaire tech investor, political donor, and long-time Donald Trump supporter, Peter Thiel has sold his entire stake in Ethereum treasury firm ETHZilla, signaling caution in the crypto market just as BlackRock’s ETH staking ETF filings stir investor excitement.
SEC Filing Confirms Complete Exit
A recent SEC filing shows that Thiel and his Founders Fund reduced their ownership to 0%, down from a previously disclosed ~7.5% stake.
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This divestment, completed by the end of 2025, marks a complete reversal from Thiel’s earlier high-profile support of the company’s ETH treasury strategy.
Peter Thiel initially disclosed a 7.5% stake in ETHZilla last August, while his investor group separately revealed holdings over 9% in Tom Lee’s BitMine Immersion Technologies, the largest Ethereum treasury company.
ETHZilla’s Strategic Pivot and Debt Moves
The move comes as ETHZilla has reportedly been selling Ethereum to repay debt and appears to be pivoting away from a pure crypto treasury model toward other tokenization and real-world asset initiatives.
In December 2025, ETHZilla sold 24,291 ETH for $74.5 million to repay convertible notes and pursue its real-world asset tokenization plans, while signaling that future value will come from revenue and cash flow from the RWA tokenization business.
Following the announcements, its stock dropped 8.7% to $6.30 per share. In response, law firm Pomerantz LLP, a veteran in securities class actions, has launched an investigation into ETHZilla Corporation to determine whether the company and some of its officers or directors may have violated securities laws or engaged in unlawful business practices that harmed shareholders.
What Is ETHZilla?
ETHZilla Corporation is a fintech company that underwent a major pivot from biotech (formerly 180 Life Sciences) to an Ethereum treasury and DeFi-focused company in 2025.
The firm positioned itself as an Ether accumulation vehicle and crypto infrastructure player, focusing on Ethereum-based infrastructure for tokenizing real-world assets (RWAs), bridging traditional finance with blockchain.
It rebranded in August 2025 and initially built an Ethereum treasury, amassing over 100,000 ETH at its peak, but has since shifted toward tokenizing assets like jet engines leased to U.S. airlines.
Why This Matters
ETHZilla was widely seen as trying to become Ethereum’s version of MicroStrategy. Peter Thiel’s exit may signal caution among top investors in Ethereum-focused firms, highlighting concerns about risk, market sentiment, and volatility in the emerging ETH treasury and tokenization sector.
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People Also Ask:
ETHZilla is a fintech company that pivoted from biotech to an Ethereum treasury and DeFi-focused platform, now exploring tokenization of real-world assets.
These firms accumulate and hold Ethereum as a corporate treasury asset, similar to how companies like MicroStrategy hold Bitcoin.
High-profile exits can signal caution and influence market sentiment toward Ethereum treasury firms, though broader crypto markets may be unaffected directly.
