Billionaire Peter Thiel, along with the venture fund Founders Fund, has completely divested their stakes in ETHZilla, a company specializing in cryptocurrency asset management. The relevant changes are reflected in a Form 13G submitted to the U.S. Securities and Exchange Commission (SEC).
This is reported by Finway
Reasons for Investor Exit and Stock Dynamics
According to official documents, both Peter Thiel and Founders Fund have reduced their stakes in ETHZilla to zero. Their decision comes amid a general market decline and stock volatility. It is worth noting that in August 2025, when it was announced that these investors had acquired 7.5% of ETHZilla’s shares, the company’s stock surged by more than 90%.
“Their investments in the company led to a 90% jump in its stock in August 2025.”
ETHZilla previously operated under the name 180 Life Sciences but underwent rebranding in July 2025 and announced a new strategy focused on accumulating assets in Ethereum. This allowed the company to significantly strengthen its market position, although it later had to reduce its portfolio due to high volatility.
Current State of ETHZilla and Future Steps
In October 2025, ETHZilla sold Ethereum worth $40 million to fund a share buyback program. According to the latest data as of the end of January 2026, the company held 65,850 ETH, placing it among the top 10 largest public holders of this asset in the world. The average purchase price of Ethereum has not been disclosed by the company.
After the news of Peter Thiel and Founders Fund’s exit became public, ETHZilla’s stock fell by approximately 7% in pre-market trading. This dynamic underscores the market’s sensitivity to the actions of major investors and strategic changes in companies related to digital assets.
ETHZilla Stock Price on Nasdaq. Source: TradingView