{"id":22316,"date":"2026-02-18T17:26:14","date_gmt":"2026-02-18T17:26:14","guid":{"rendered":"https:\/\/bitunikey.com\/news\/ethzilla-struggles-to-find-footing-as-peter-thiels-founders-fund-exits\/"},"modified":"2026-02-18T17:26:31","modified_gmt":"2026-02-18T17:26:31","slug":"ethzilla-struggles-to-find-footing-as-peter-thiels-founders-fund-exits","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/ethzilla-struggles-to-find-footing-as-peter-thiels-founders-fund-exits\/","title":{"rendered":"ETHZilla struggles to find footing as Peter Thiel\u2019s Founders Fund exits"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">ETHZilla Corp (ETHZ) shares faced intense pressure in pre-market trading this Wednesday following news that billionaire investor Peter Thiel and his venture firm, Founders Fund, have completely liquidated their position.<\/p>\n<div id=\"cn-block-summary-block_8a8faf36ea983676f623a20def336cb5\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>An SEC filing revealed that Peter Thiel and Founders Fund have completely liquidated their 7.5% stake in Ethzilla (ETHZ), triggering a 5.13% pre-market drop to $3.33.<\/li>\n<li>Originally a biotech firm (180 Life Sciences), Ethzilla\u2019s high-leverage pivot to a \u201ccorporate Ethereum treasury\u201d model has faltered, with the stock currently down 97% from its 2025 highs.<\/li>\n<li>Amidst heavy debt and market volatility, the company is attempting to stabilize by pivoting again, this time toward tokenizing jet engines and home loans, though investor confidence remains shaken.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<h2 class=\"wp-block-heading\">The Thiel exodus: Founders Fund liquidates stake in ETHZilla<\/h2>\n<p>The stock, which has already plummeted over 97% from its 2025 highs, hit a pre-market low of $3.33, representing a 5.13% drop from its previous close.<\/p>\n<figure class=\"wp-block-image size-full is-resized\"><figcaption class=\"wp-element-caption\">ETHzilla price performance | Source: Google Finance<\/figcaption><\/figure>\n<p>The sell-off was triggered by a late Tuesday SEC <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1690080\/000199596426000003\/xslSCHEDULE_13G_X01\/primary_doc.xml\" target=\"_blank\" rel=\"nofollow\">filing<\/a> revealing that Thiel\u2019s entities now hold zero shares in the company. This marks a dramatic reversal from August 2025, when the fund <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1690080\/000141588925021455\/xslSCHEDULE_13G_X01\/primary_doc.xml\" target=\"_blank\" rel=\"nofollow\">disclosed<\/a> a significant 7.5% stake. <\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>At the time, Thiel\u2019s entry was seen as a massive vote of confidence for ETHZilla\u2019s pivot from biotechnology to a corporate Ethereum (ETH) treasury model.<\/p>\n<p>The massive sell-off marks a dramatic fall from grace for the firm, which rebranded from 180 Life Sciences last year to become a high-leverage Ethereum treasury. While the initial pivot drew over $425 million in institutional backing, the recent liquidation of its ETH holdings has left investors questioning the sustainability of its \u2018crypto-first\u2019 balance sheet.<\/p>\n<h2 class=\"wp-block-heading\">Crisis in the ETH treasury model<\/h2>\n<p>The full exit by Founders Fund underscores the growing skepticism surrounding companies that use high-leverage strategies to accumulate Ethereum. While similar \u201cBitcoin treasury\u201d plays have remained popular, Ether-focused firms like ETHZilla have struggled under the weight of market volatility and debt obligations.<\/p>\n<p>ETHZilla has recently attempted to diversify its business to stabilize its balance sheet. Recent moves include:<\/p>\n<ul class=\"wp-block-list\">\n<li>Asset Tokenization: Launching \u201cETHZilla Aerospace\u201d to tokenize leased jet engines.<\/li>\n<li>Debt Repayment: Liquidating over 24,000 ETH in late 2025 to settle convertible bond obligations.<\/li>\n<li>Real Estate: Acquiring modular home loan portfolios for on-chain yields.<\/li>\n<\/ul>\n<p>Despite these efforts to pivot toward Real World Assets (RWA), the market appears focused on the loss of its most prominent institutional backer. For many investors, Thiel\u2019s departure signals that the \u201cSaylor-style\u201d accumulation strategy for Ethereum may be facing a structural breakdown.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>ETHZilla Corp (ETHZ) shares faced intense pressure in pre-market trading this Wednesday following news that billionaire investor Peter Thiel and his venture firm, Founders Fund, have completely liquidated their position.&hellip;<\/p>\n","protected":false},"author":1,"featured_media":8702,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-22316","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/22316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=22316"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/22316\/revisions"}],"predecessor-version":[{"id":22317,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/22316\/revisions\/22317"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/8702"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=22316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=22316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=22316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}