Tech billionaire Peter Thiel is completely withdrawing from Ethereum company ETHZilla

Tech billionaire Peter Thiel has completely withdrawn from ETHZilla, a publicly traded company that is betting big on Ethereum (ETH).

A recent report to the American regulator SEC shows that Thiel and his investment fund Founders Fund no longer own a single share. Striking, because a few months ago they still had a stake of more than seven percent.

The move comes at a time when the Ethereum price is under heavy pressure. Since its peak in 2025, the currency has lost almost sixty percent of its value. This means that the business model of so-called crypto treasury companies is once again under discussion.

Ethereum price under pressure puts strategy on edge

ETHZilla is a so-called digital asset treasury. This means that the company raises capital through shares and bonds, and then largely invests that money in crypto. In this case it specifically concerned Ethereum (ETH).

The model is inspired by Michael Saylor, who built an exchange vehicle around Bitcoin (BTC) with his company Strategy.

But while the Bitcoin price remained relatively strong, Ethereum had a harder time. Due to the sharp drop, ETHZilla had to intervene several times. In the fall, the company sold tens of millions of dollars worth of ETH to buy back its own shares and pay down debt. Part of the proceeds went to repay convertible bonds.

From biotech to Ethereum and now to aircraft engines

ETHZilla has a remarkable history. The company previously operated as a biotech company under the name 180 Life Sciences. Things took a sharp turn in August. It decided to bet entirely on Ethereum and changed its name to ETHZilla.

At its peak, the company owned more than a hundred thousand ETH tokens, according to data from DeFiLlama. When the crypto market tanked again in October, ETHZilla was among the first companies to partially liquidate their reserves.

The company is now once again choosing a different direction. Through a new subsidiary, ETHZilla Aerospace, it offers tokenized access to shares in leased aircraft engines. This shifts the focus from pure crypto exposure to so-called real-world assets.

The fact that Thiel is now completely exiting can be seen as a signal that confidence in these types of Ethereum treasuries is declining. Especially now that the Ethereum price is still far below the previous peak and investors are taking a more critical look at risky constructions.