Peter Thiel's Fund Dumps All ETHZilla Shares

When a billionaire venture capitalist dumps every single share of a company, it's not just profit-taking—it's a verdict. Peter Thiel's Founders Fund held zero shares in ether treasury firm ETHZilla by the end of 2025, down from a 7.5% stake just months earlier.

The Panic Sale That Told the Story

ETHZilla once looked like the Ethereum version of Michael Saylor's bitcoin-hoarding success story. The company amassed over 100,000 ETH tokens at its peak, riding the crypto wave like a digital gold rush prospector.

Then October happened. As markets peaked, ETHZilla panicked. First, it sold $40 million worth of ether for buybacks. Then $74.5 million more in December to pay down debt from convertible notes. The company that built its identity on "hodling" ether couldn't hold when it mattered most.

Now? ETHZilla is pivoting again—this time to aerospace, offering investors "tokenized slices of leased jet engines." From failed biotech (180 Life Sciences) to crypto treasury to aviation tokens. If that doesn't scream business model crisis, what does?

The Treasury Company Trap

Here's the uncomfortable truth about crypto treasury companies: they're glorified ETFs with extra steps and higher fees. When ETHZilla was riding high, investors paid a premium to own a company that owned crypto. When crypto crashed, they got hit twice—once by the underlying asset decline, and again by the company's operational panic.

Founders Fund's complete exit signals something deeper than disappointment in one company. It's a rejection of the entire "buy-and-hold-one-asset" business model that proliferated during the crypto boom.

Winners and Losers in the Shakeout

The winners? Direct crypto holders who didn't pay management fees or suffer from corporate decision-making. The losers? Retail investors who believed that wrapping crypto in a corporate structure added value.

Institutional investors like Founders Fund are increasingly asking: "What value does this company create beyond asset custody?" For many crypto treasury firms, the answer is uncomfortably thin.

The Thiel dump isn't just about one fund's exit—it's a signal that the era of "crypto company as crypto proxy" may be ending before it truly began.