Peter Thiel Exits ETHZilla Treasury, Sells $74.5M ETH Holdings

Billionaire investor Peter Thiel has sold his entire stake in ETHZilla Corp., a Nasdaq-listed company that once relied heavily on Ethereum. According to a recent SEC filing, disclosed earlier today, Thiel’s entities, including Founders Fund, no longer hold any of the 7.5% ETH shares acquired back in August 2025.

Thiel’s decision, according to Bloomberg, follows ETHZilla’s multi-million-dollar ETH sale in December 2025 to address its debt and pivot towards tokenizing real-world assets. Market analysts interpret his exit as an indication of waning confidence in crypto treasury models amid Ethereum’s ongoing downturn.

ETHZilla’s Key Transactions

ETHZilla rebranded and shifted its focus to an Ethereum-based treasury strategy in mid-2025. The company successfully amassed a significant holding of Ethereum, surpassing 82,000 tokens, before it began to divest some of its assets. In August 2025, Thiel’s companies acquired a 7.5% stake in ETHZilla, resulting in a remarkable stock price surge of over 200%.

In October 2025, however, ETHZilla made headlines by selling $40 million worth of ETH to fund a $250 million stock buyback. Just two months later, in December, the company executed a more substantial sale, offloading $74.5 million worth of ETH at an average price of $3,068 per token. This strategic move aimed to pay off senior secured convertible notes and reduce financial pressures.

After the sales, ETHZilla retained approximately 69,800 ETH, valued at around $207 million at that time. Following news of Thiel’s exit, ETHZilla’s shares fell 3% in after-hours trading on February 17, 2026.

Strategic Shift and Future Plans

ETHZilla has moved away from its modified net asset value metric concerning crypto holdings. Instead, the company is now shifting its focus towards generating revenue through tokenized real-world assets. Additionally, the company plans to acquire a portfolio of 95 manufactured home loans valued at $4.7 million in February 2026, which will be tokenized on an Ethereum Layer-2 network.

These efforts aim to deliver consistent returns from traditional sectors such as aerospace and housing, which stand in stark contrast to the volatility of digital assets. Since hitting its peak in 2025, Ethereum has seen its value drop nearly 60%, currently trading just above $2,000.

This decline has posed significant challenges for firms focused on treasury management and has exerted pressure on ETHZilla’s value. Thiel’s departure marked the loss of an important ally for ETHZilla, which had previously played a significant role in boosting market confidence in its original strategy.

Meanwhile, as of this writing, ETHZilla has yet to publicly comment on Thiel’s exit or the potential long-term implications for its future direction.

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