Peter Thiel Bails on ETHZilla, Leaves $74.5M in Ether Behind

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Peter Thiel and his Founders Fund have sold $74.5 million worth of ether (ETH) through ETHZilla Corp., fully exiting the company’s crypto treasury. The SEC filing confirmed Thiel’s entities no longer hold any shares in ETHZilla. Presumably, they’ve moved on to more stable investments, like a 1970s-era typewriter or a life insurance policy from a company that doesn’t exist.

The sale follows a series of ether liquidations by ETHZilla to cover debt and buy back stock. The company previously held over 100,000 ETH at its peak, according to DefiLlama. A peak, we assume, that was as fleeting as a cryptocurrency’s promise of eternal value.

ETHZilla Faces Market Pressure

ETHZilla started as a biotech firm, 180 Life Sciences Corp., before making a full pivot to cryptocurrency management in August. The Palm Beach-based company rebranded and shifted its operations entirely to focus on holding ETH, signaling a major change from its original biotech focus. One can only imagine the board meeting where someone said, “Let’s just… be a crypto company now.”

The timing of this shift coincided with a broader crypto market downturn, which immediately affected the company’s treasury. Ether has fallen nearly 60% from last year’s peak, trading around $2,000 at press time. The decline put pressure on ETHZilla’s newly acquired crypto holdings, making careful financial management a priority. Or, as the CEO might say, “We’re just trying to survive until the next bubble.”

To stabilize its finances, ETHZilla sold ether in October and December. In late October, it liquidated roughly $40 million to repurchase shares. Two months later, it sold $74.5 million to repay senior secured convertible notes, according to filings. A masterclass in financial jujitsu, if you will.

A Shift to Real-World Assets

ETHZilla has launched a subsidiary, ETHZilla Aerospace, to offer tokenized equity in leased jet engines. The move signals a shift toward real-world, asset-backed offerings beyond its cryptocurrency holdings. Because nothing says “trust us” like a tokenized jet engine. Also, the company has not publicly commented on Thiel’s exit or its recent ETH sales. Perhaps they’re too busy calculating how many more times they can pivot before their shareholders stop speaking to them.

Notably, the development underscores the caution high-profile investors are showing amid volatile markets. It also highlights the challenges of maintaining a public ether treasury during rapid price swings. One might say it’s a testament to the resilience of the human spirit-or at least the resilience of a company trying to avoid bankruptcy.

Looking ahead, market watchers will follow ETHZilla’s aerospace venture and broader strategy for clues about its next steps. The pivot may indicate a new approach for digital asset companies seeking revenue outside of pure crypto holdings. Or it may just be a desperate attempt to appear relevant. Either way, the crypto world continues to be as unpredictable as a sentient spreadsheet.

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2026-02-18 15:30