<div id="readability-page-1"><div>Tech billionaire Peter Thiel and affiliated Founders Fund entities have exited their entire position in Ethereum treasury firm ETHZilla (Nasdaq: ETHZ), according to a 13G filing with the U.S. Securities and Exchange Commission late Tuesday.ETHZilla shares slid nearly 7% in the premarket session, with the stock trading near $3.20, per Yahoo Finance. This price level represents an approximately 97% decline from the peak of $107 reached last August when the firm first announced its pivot to a digital asset treasury model.Thiel and entities, including Founders Fund Growth Management, LLC, acquired a 7.5% stake in the company in August 2025, a position disclosed amid ETHZilla's rebrand from the biotech firm 180 Life Sciences Corp. The news of Thiel's backing at that time sent shares up more than 90% in a single session.ETHZilla, which officially launched its Ethereum (ETH) treasury strategy on Aug. 18, 2025, following a $565 million capital raise, said in a statement last year it aimed to become a &#34;premier Ethereum-focused accumulation vehicle&#34; providing public market investors with direct access to ETH while leveraging staking for yield. The raise included participation from over 60 investors such as Electric Capital, Polychain Capital, and GSR.Despite those ambitions, the firm has recently scaled back its accumulation efforts and is instead selling. In October, ETHZilla sold approximately $40 million in ether to fund a $250 million stock repurchase plan authorized by its board. In December, the company sold an additional 24,291 ETH, valued at $74.5 million at the time, to redeem outstanding senior secured convertible notes.ETHZilla’s latest pivot to RWA tokenizationETHZilla said in December that the company’s future value would be &#34;driven by revenue and cash flow growth from our RWA tokenization business.&#34;The firm has since pursued multiple tokenization initiatives. On Feb. 5, ETHZilla acquired a portfolio of 95 manufactured and modular home loans for approximately $4.7 million, which it plans to tokenize on an Ethereum Layer 2 protocol to generate an expected annualized yield of 10.36%. The company also recently purchased two CFM56-7B24 aircraft engines for tokenization through the Liquidity.io platform, an SEC-regulated alternative trading system.ETHZilla currently ranks as the sixth-largest corporate holder of Ethereum, according to The Block’s data dashboard. Its 69,802 ETH stake, valued at approximately $139 million at current rates, trails significantly behind industry leader Bitmine Immersion Technologies, which holds 4,371,497 ETH valued at approximately $8.7 billion. Cumulatively, the top 10 Ethereum treasury companies hold 6,101,560 ETH, representing a total market value of over $12 billion.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. </div></div>

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Tech billionaire Peter Thiel and Founders Fund have exited their entire position in Ethereum treasury firm ETHZilla, as revealed in a recent SEC filing. Following the news, ETHZilla shares fell nearly 7% to around $3.20, marking a 97% decline from last August's peak of $107. Thiel's involvement initially boosted shares by over 90%. ETHZilla, which launched its Ethereum treasury strategy in August 2025, has shifted focus to revenue growth from RWA tokenization, recently acquiring loans and aircraft engines for tokenization.

- Peter Thiel and Founders Fund have fully exited their stake in ETHZilla, causing shares to decline by nearly 7% in premarket trading.  
- ETHZilla's stock has dropped approximately 97% from its peak in August 2025, shortly after Thiel's initial investment during its rebranding effort.  
- The company, which has shifted focus to RWA tokenization initiatives, holds a significant amount of Ethereum but has recently sold portions of its ETH to fund a stock repurchase plan and redeem notes.

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Peter Thiel and Founders Fund exit Ethereum treasury firm ETHZilla, SEC filing shows