Peter Thiel and Founders Fund Exit Ethereum Treasury Firm ETHZilla

Last updated on March 8th, 2026 at 02:49 pm

Billionaire tech investor Peter Thiel and his venture capital firm, Founders Fund, have completely divested their holdings in ETHZilla, an Ethereum-focused treasury company, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).

The filing indicates that Thiel’s firm reduced its ownership to 0% by early 2026, ending a high-profile backing that once saw the firm holding a 7.5% stake in the Nasdaq-listed entity.

The exit marks a swift reversal for the firm, which originally amassed its position in August 2025 as part of a $581 million capital raise to transform the former biotech company into a digital asset powerhouse.

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Peter Thiel’s Founders Fund exit Ethereum treasury firm ETHZilla.
• The question is where is the money going next? Bitcoin? 👀 pic.twitter.com/FcZnYuyT6P
— LiaSue ☄️ (@TruthTrencher) February 18, 2026

Strategic shift follows initial hype

The divestment was reported under the Schedule 13G passive rule, signifying that Founders Fund did not intend to influence the control or management of ETHZilla before exiting its position entirely.

This move follows a gradual reduction in holdings; SEC documents previously showed the fund had cut its stake to 5.6% by September 30, 2025. Following the news of the total exit, ETHZilla’s shares experienced a 3% decline in after-hours trading, continuing a downward trend that has seen the stock lose 28% of its value year-to-date.

The firm, formerly known as 180 Life Sciences, rebranded to focus on accumulating Ethereum ($ETH) and generating on-chain yield through decentralised finance (DeFi) protocols. Despite the loss of its most prominent institutional backer, ETHZilla remains a significant player in the corporate treasury space, holding approximately 82,186 $ETH valued at roughly $349 million alongside $238 million in cash reserves.

ETHZilla’s ongoing role in Web3

While Peter Thiel’s exit signals a change in his personal investment strategy for 2026, ETHZilla continues to expand its footprint in the Web3 industry. The company recently introduced the Eurus Aero Token I through its subsidiary, ETHZilla Aerospace, enabling investors to engage with aircraft engine leasing through digital tokens. This move aligns with the firm’s broader strategy of bringing real-world assets (RWAs) on-chain via tokenization, targeting sectors such as auto loans and commercial real estate.

Meanwhile, Vitalik Buterin recently reiterated that Ethereum is not his or any single group’s property. He stressed that using or building on Ethereum doesn’t require agreeing with his personal views on topics like DeFi, AI, or politics. Ethereum, designed to be permissionless and censorship-resistant, allows anyone to deploy applications or move funds without needing approval from him, the Ethereum Foundation or protocol developers.

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