Business • February 18, 2026, 3:33AM EST

Peter Thiel and Founders Fund exit Ethereum treasury firm ETHZilla, SEC filing shows

Quick Take

Peter Thiel and affiliated entities fully have divested their 7.5% stake in Ethereum treasury firm ETHZilla, according to a 13G filing with the SEC.
The stock fell nearly 7% in premarket trading to around $3, down from a high of over $107 in August following Thiel’s initial investment disclosure.
ETHZilla has reduced its ether holdings through multiple sales since October, including a $40 million sale for share repurchases and a $74.5 million sale in December to redeem senior secured convertible notes.

Tech billionaire Peter Thiel and affiliated Founders Fund entities have exited their entire position in Ethereum treasury firm ETHZilla (Nasdaq: ETHZ), according to a 13G filing with the U.S. Securities and Exchange Commission late Tuesday.

ETHZilla shares slid nearly 7% in the premarket session, with the stock trading near $3.20, per Yahoo Finance. This price level represents an approximately 97% decline from the peak of $107 reached last August when the firm first announced its pivot to a digital asset treasury model.

Thiel and entities, including Founders Fund Growth Management, LLC, acquired a 7.5% stake in the company in August 2025, a position disclosed amid ETHZilla's rebrand from the biotech firm 180 Life Sciences Corp. The news of Thiel's backing at that time sent shares up more than 90% in a single session.

ETHZilla, which officially launched its Ethereum (ETH) treasury strategy on Aug. 18, 2025, following a $565 million capital raise, said in a statement last year it aimed to become a "premier Ethereum-focused accumulation vehicle" providing public market investors with direct access to ETH while leveraging staking for yield. The raise included participation from over 60 investors such as Electric Capital, Polychain Capital, and GSR.

Despite those ambitions, the firm has recently scaled back its accumulation efforts and is instead selling. In October, ETHZilla sold approximately $40 million in ether to fund a $250 million stock repurchase plan authorized by its board. In December, the company sold an additional 24,291 ETH, valued at $74.5 million at the time, to redeem outstanding senior secured convertible notes.

ETHZilla’s latest pivot to RWA tokenization

ETHZilla said in December that the company’s future value would be "driven by revenue and cash flow growth from our RWA tokenization business."

The firm has since pursued multiple tokenization initiatives. On Feb. 5, ETHZilla acquired a portfolio of 95 manufactured and modular home loans for approximately $4.7 million, which it plans to tokenize on an Ethereum Layer 2 protocol to generate an expected annualized yield of 10.36%.

The company also recently purchased two CFM56-7B24 aircraft engines for tokenization through the Liquidity.io platform, an SEC-regulated alternative trading system.

ETHZilla currently ranks as the sixth-largest corporate holder of Ethereum, according to The Block’s data dashboard. Its 69,802 ETH stake, valued at approximately $139 million at current rates, trails significantly behind industry leader Bitmine Immersion Technologies, which holds 4,371,497 ETH valued at approximately $8.7 billion.

Cumulatively, the top 10 Ethereum treasury companies hold 6,101,560 ETH, representing a total market value of over $12 billion.

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