Peter Thiel Exits ETHZilla Amid Ethereum Sell-Off

• Thiel fully sells ETHZilla stake, signaling a major shift in corporate Ethereum confidence and strategy.

• ETHZilla cuts Ethereum holdings from 100K to ~70K ETH, raising funds for stock buybacks and debt repayment.

• Firm pivots to tokenized real-world assets like home loans and jet engines to generate stable revenue streams.

Billionaire investor Peter Thiel has fully sold his stake in ETHZilla, just months after revealing he owned 7.5% of the firm. His earlier investment had suggested strong confidence in Ethereum as a corporate treasury asset.

But a Feb. 17, 2026 SEC filing shows Thiel and his Founders Fund affiliates now hold zero shares, with no voting or decision-making power. This is a total departure from the Ethereum-centric company, which was once considered one of the best examples of corporate Ethereum accumulation.

ETHZilla, headquartered in Palm Beach, began its operations as a biotech firm named 180 Life Sciences Corp. In August 2025, it made a sudden change in its strategy and began to concentrate on Ethereum, increasing its holdings to over 100,000 ETH at one point.

However, the company has been gradually scaling back its Ethereum holdings as the overall crypto market has faced challenges. The price of Ethereum fell by 28.4% in Q4 2025, and ETHZilla sold some of its Ethereum holdings to meet its financial commitments.

In October, it offloaded $40 million worth of Ethereum for a $250 million stock repurchase plan. A second sale in December added 24,291 ETH, worth $74.5 million, to repay senior secured convertible notes. Consequently, ETHZilla now holds 69,802 ETH, approximately $140 million, placing it among the top 10 public corporate holders of Ethereum.

Strategic Shift Toward Tokenized Assets

Besides reducing Ethereum exposure, ETHZilla has pivoted toward real-world asset tokenization. The firm purchased 95 manufactured home loans for $4.7 million to tokenize on an Ethereum Layer 2 platform. Additionally, ETHZilla acquired two CFM56-7B24 aircraft engines for tokenization through an SEC-regulated platform. Hence, the new strategy aims to generate yield through tokenized revenue streams.

ETHZilla Aerospace, a branch of the company, plans to let investors gain exposure to leased jet engines through tokenization. The firm aims to earn future value from steady cash flow and growing revenue, instead of relying only on Ethereum price jumps.

Meanwhile, Founders Fund still holds over 9% of BitMine Immersion, the biggest corporate Ethereum treasury, showing that some investors remain confident in Ethereum strategies.

However, the departure of Thiel may raise concerns about the stability of ETHZilla. In addition, the current downturn in the crypto market serves as a reminder of the dangers of overemphasizing crypto in one basket, particularly for medium-sized companies such as ETHZilla.