Peter Thiel just made a quiet but loud move. He and Founders Fund have fully exited their position in Ethereum treasury firm ETHZilla. The confirmation came through a fresh 13G filing with the SEC.
That is a sharp pivot. Just months ago, Thiel’s entry sent the stock flying more than 90%. Now he is out.
The timing raises eyebrows. It suggests that institutional enthusiasm for this Ethereum treasury model may be cooling, especially with broader market volatility back in focus.
- Total Exit: Founders Fund liquidated its entire stake following an initial 7.5% acquisition in August 2025.
- Market Impact: ETHZilla shares slid nearly 7% to $3.20 in premarket trading, down 97% from their $107 peak.
- Strategic Pivot: The firm is shifting focus from pure ETH accumulation to tokenizing real-world assets (RWA) like aircraft engines.
What Does the Exit Signal?
This is not just any investor stepping aside. Founders Fund was one of the biggest early backers, taking a 7.5% stake when ETHZilla pivoted from biotech into a digital asset treasury play. At the time, that move felt like serious institutional validation for Ethereum linked balance sheet strategies.
Now they are out. Completely.
That does not automatically mean they are bearish on crypto itself. It looks more like a shift in confidence toward this specific treasury model. The distinction matters.
Interestingly, Founders Fund has kept exposure to other crypto infrastructure names. That suggests selectivity, not retreat. In volatile markets, capital often consolidates into what it sees as higher quality plays rather than spreading risk widely.
Breaking Down the Filing And What Could Happen Next
The SEC filing shows Founders Fund fully liquidated its position. No trimming. No partial exit. A clean break. The market did not take it lightly.
ETHZilla shares fell nearly 7% in premarket trading, hovering around $3.20. That is a brutal 97% drop from the $107 peak last August.
The weakness lines up with the company’s own moves. ETHZilla recently sold $40 million worth of ETH for stock buybacks and another $74.5 million to manage debt. It now holds about 69,802 ETH, roughly $139 million at current prices. That is small compared to larger treasury players in the space.
The firm is now shifting toward real world asset tokenization, targeting areas like housing loans and aircraft engines.
At this stage, the story is no longer just about holding ETH. It is about whether the RWA strategy can generate real revenue and stabilize the business model.
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