Peter Thiel’s Ethereum Exit: A Crypto Conundrum

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A billionaire with a penchant for ventures and a fondness for cryptic decisions, Peter Thiel’s Founders Fund has bid adieu to ETHZilla, a digital asset treasury firm that once held Ethereum like a treasure chest full of shiny pebbles.

The development arrives as digital asset treasury firms face a tempest, their sails furled by the howling winds of a crypto market downturn.

Peter Thiel’s Sudden Exit from ETHZilla in the Midst of Crypto Chaos

The digital asset treasury trend, once as lively as a dance at a party, has now taken a turn for the worse. Firms, like overzealous chefs, began stockpiling cryptocurrencies as reserve assets, drawing the gaze of investors who thought they’d stumbled upon a golden ticket.

BeInCrypto once whispered in August 2025 that Thiel, with his sly smile, controlled a 7.5% stake in ETHZilla. But the latest SEC filing reveals a tale of vanishing assets-entities managed by Thiel now own nothing, as if they’d been spirited away by a mischievous sprite.

“This matters because Thiel is a maestro of financial wizardry, and his exit might hint at a shift in the winds, a strategic dance away from Ethereum’s siren song,” Crypto Town Hall mused, sipping tea with a knowing wink.

The move coincides with a broader market downturn. In October, crypto markets suffered a sharp downturn, a calamity so severe it’s been dubbed the ‘10/10’ or ‘Black Friday’ crash. The following months only deepened the gloom.

Ethereum fell 28.4% in Q4 2025, marking its first negative fourth quarter since 2022. Though 2026 began with a brief recovery, like a flickering candle, the flame soon died.

ETH closed January 2026 down 17.7%, and so far in February, its price has declined another 18.1%. At press time, it traded at $2,017, a number that makes even the most stoic investor sigh.

Treasury Strategies in Turmoil as Ethereum’s Descent Ravages Corporate Holders

The sustained price weakness has left digital asset treasury firms gasping, their crypto holdings now as valuable as a wet paper towel. For instance, BitMine sits on unrealized losses of over $7 billion, a sum so vast it could buy a small country.

ETHZilla, once known as 180 Life Sciences, now rebranded as ETHZilla, a name as mysterious as a riddle. At its peak, the company held more than 100,000 ETH, a hoard that would make a dragon jealous.

As market conditions worsened in October, the company hurried to trim its exposure, like a mouse fleeing a cat. Toward the end of that month, ETHZilla offloaded roughly $40 million in Ether, directing the proceeds toward share buybacks-a financial juggling act if ever there was one.

A second round of sales followed in December, totaling about $74.5 million. The funds were allocated to repay debt, a task as thrilling as watching paint dry. CoinGecko data shows the company now holds 69,802 ETH, a substantial reduction from its previous peak position.

The company has since outlined yet another strategic shift. According to Bloomberg, ETHZilla’s subsidiary, ETHZilla Aerospace, is seeking to offer tokenized access to equity in leased jet engines-a venture as baffling as it is bold.

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2026-02-18 11:50