Founders Fund Exits ETHZilla Stake in SEC Filing

Peter Thiel's Founders Fund has completely divested from ETHZilla, a company focused on holding Ethereum as a treasury asset, according to a recent filing with the U.S. Securities and Exchange Commission. The venture capital firm, linked to the billionaire co-founder of PayPal and Palantir Technologies, reported zero ownership in ETHZilla as of December 31, 2025, after disclosing a 7.5 percent stake in August of that year.

The exit, which involved selling 11.6 million shares initially valued at around $40 million, coincides with a prolonged downturn in Ethereum's price and challenges facing similar crypto treasury firms. ETHZilla's shares fell about 3 percent in extended trading following the disclosure and have declined 28 percent so far in 2026. Ethereum itself dropped 28.4 percent in the fourth quarter of 2025—its first negative fourth quarter since 2022—before falling an additional 17.7 percent in January 2026 and 18.1 percent so far this month, trading at approximately $2,017 as of the latest reports.

ETHZilla, originally a biotechnology firm known as 180 Life Sciences Corp., shifted its strategy in mid-2024 to adopt an Ethereum treasury model inspired by companies like...