Peter Thiel Bows Out of ETHZilla as Volatility Pressures Public Ether Treasuries

• Peter Thiel exits ETHZilla after previously holding a 7.5% stake in the Ether treasury firm.

• ETHZilla sold 24,291 ETH to repay debt and now holds about 69,800 Ether on its balance sheet.

• Ether treasury strategies face pressure as volatility tests public companies holding large ETH reserves.

Peter Thiel’s Founders Fund has fully exited ETHZilla, according to a new SEC filing. The amendment shows Thiel-linked entities now hold zero shares. The disclosure reverses a 7.5% stake reported in August 2025. At that time, the group owned 11,592,241 shares. Those holdings were valued near $40 million based on market prices.

JUST IN: Billionaire Peter Thiel fully exits #Ethereum $ETH treasury firm #ETHZilla, sells entire stake pic.twitter.com/XkY4DRX20U

— Finn (@Finn_Creator) February 19, 2026

The filing marks a sharp shift in exposure to Ether-focused treasury firms. It also arrives as ETHZilla navigates asset sales and strategic changes. Shares recently traded near $3.40 after a fresh decline. Over the past month, the stock has fallen about 37%.

Founders Fund Exits After Prior 7.5% Stake

Founders Fund disclosed its 7.5% position on Aug. 4, 2025. The stake is related to shares of 180 Life Sciences Corp. The company later rebranded as ETHZilla. In July 2025, it raised $425 million to launch an Ether treasury strategy.

Soon after, the company sought more capital. In September, it moved to raise $350 million through convertible bonds. Management aimed to expand its Ether holdings and deploy assets across DeFi and tokenized markets. At one stage, ETHZilla held more than 100,000 ETH.

However, market conditions shifted. Ether prices retreated from prior highs. As pressure built, ETHZilla began reducing its token reserves. The company sold 24,291 ETH in December 2025. The sale generated $74.5 million at an average price of $3,068.69 per token. It used the proceeds to repay debt. After the transaction, the balance stood near 69,800 ETH.

Ether Treasury Model Faces Market Test

Thiel’s exit adds scrutiny to Ether-heavy treasury strategies. Several public firms adopted similar models during the crypto rally. Yet volatility has tested those approaches. ETHZilla’s stock has reflected that strain. Shares slipped further after the launch of a tokenized aviation product.

Meanwhile, other large Ether holders have taken different paths. BitMine Immersion Technologies increased its exposure. On Feb. 9, it acquired 40,613 ETH. That purchase lifted its total to more than 4.325 million ETH. At current prices, the holdings are worth about $8.8 billion. Moreover, Strategy had earlier added 196 Bitcoin, bringing its total holdings to 640,031 BTC worth around $71.8 billion.

In contrast, Trend Research moved to unwind its position. On Feb. 8, it sold 651,757 ETH. The sale totaled roughly $1.34 billion. The firm recorded an estimated realized loss of $747 million.

Strategic Shift Toward Tokenized Aviation

ETHZilla has started to diversify beyond pure Ether exposure. The company launched ETHZilla Aerospace as a subsidiary. The unit offers tokenized exposure to leased jet engines. The product aims to link blockchain infrastructure with aviation assets.

The launch followed continued Ether sales. Moreover, the stock dipped about 3% after the aviation token debut. The shift signals an effort to reduce reliance on crypto treasury gains. However, Thiel-linked entities had already completed their divestment by year-end.

The SEC filing now confirms that exit. Consequently, the development underscores the pressure facing Ether-focused treasury companies.