Peter Thiel has just made a discreet but loud gesture. He and Founders Fund completely liquidated their position in Ethereum treasury company ETHZilla. Confirmation came from a new 13G filing with the SEC.
This is a decisive turning point. Just a few months ago, Thiel’s entry sent the stock flying by more than 90%. Now he’s out.
The timing raises eyebrows. This suggests that institutional enthusiasm for this Ethereum treasury model may be cooling, particularly as broader market volatility returns.
- Total output: Founders Fund liquidated its entire stake after an initial acquisition of 7.5% in August 2025.
- Market impact: Shares of ETHZilla slipped nearly 7% to $3.20 in pre-market trading, down 97% from their high of $107.
- Strategic pivot: The company is moving from pure ETH accumulation to tokenizing real-world assets (RWA) like airplane engines.
What is the output signal?
Not just any investor withdraws. Founders Fund was one of the largest early backers, taking a 7.5% stake when ETHZilla pivoted from biotech to a digital asset cash play. At the time, the move felt like a serious institutional validation for Ethereum-related balance sheet strategies.
Now they are out. Completely.
This does not automatically mean they are bearish on crypto itself. This seems more like a shift in confidence towards this specific cash flow model. The distinction matters.
Interestingly, Founders Fund has retained its exposure to other crypto infrastructure names. This suggests selectivity, not withdrawal. In volatile markets, capital often aggregates into what it considers to be higher quality securities rather than spreading risk widely.
Breaking down the case and what could happen next
The SEC filing shows that Founders Fund completely liquidated its position. No cutting. No partial exit. A clean break. The market did not take it lightly.
Shares of ETHZilla fell nearly 7% in pre-market trading, hovering around $3.20. This is a steep 97% drop from last August’s high of $107.
This weakness aligns with the company’s own actions. ETHZilla recently sold $40 million worth of ETH for share buybacks and another $74.5 million to manage debt. He now holds around 69,802 ETH, or around $139 million at current prices. This is small compared to the largest treasury players in the sector.
The company is now moving towards tokenizing real-world assets, targeting areas such as home loans and aircraft engines.
At this point, it’s no longer just about holding ETH. The question is whether the RWA strategy can generate real revenue and stabilize the business model.
Discover: Here are the cryptos likely to explode!
Peter Thiel Quietly Leaves Ethereum Treasury Company ETHZilla – Warning Sign for DAT Model? appeared first on Cryptonews.
