- Founders Fund sold all ETHZilla shares by the end of 2025
- ETHZilla reduced holdings from over 100,000 ETH to about 69,802 ETH
- Price drops in Q4 2025 and early 2026 pressured treasury firms
- ETHZilla used sales for buybacks and debt repayment, and is diversifying
Founders Fund, the venture firm co-founded by Peter Thiel, has exited its position in ETHZilla, according to its year-end 2025 SEC filings. The move comes as public companies that adopted crypto treasury strategies during the 2024–2025 rally confront a markedly weaker market.
Regulatory disclosures show that entities affiliated with Founders Fund no longer hold shares in ETHZilla. Earlier reporting indicated Thiel-controlled vehicles owned roughly 7.5% of the company. ETHZilla, formerly 180 Life Sciences, had repositioned itself as an Ether-focused treasury vehicle and at one point held more than 100,000 ETH as a reserve asset.
The withdrawal is notable given Founders Fund’s profile as a long-term institutional investor. Its exit underscores mounting pressure on listed firms that tied their balance sheets to volatile digital assets during the bull cycle.
Crypto Treasury Strategies Face Market Test
ETHZilla’s strategic pivot coincided with a sharp downturn in crypto markets. Ethereum fell 28.4% in the fourth quarter of 2025, followed by an additional 17.7% decline in January and further losses in February. At the time of writing, ETH traded near $1,969.
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For companies holding large crypto reserves, falling token prices translate directly into balance sheet strain. BitMine, for example, is carrying more than $7 billion in unrealized losses, with its shares down over 25% year to date.
Against that backdrop, ETHZilla trimmed its holdings. The company sold roughly $40 million worth of Ether in October and an additional $74.5 million in December. Proceeds were used to repurchase shares and reduce senior secured convertible debt. Data from CoinGecko shows current holdings of 69,802 ETH, well below prior peaks.
Institutional Positioning and What Comes Next
Beyond portfolio adjustments, ETHZilla is diversifying. Bloomberg reported that a subsidiary is exploring tokenized investment structures tied to jet engine equity leases, signaling a broader push beyond a single-asset treasury model.
Founders Fund’s exit does not, in itself, signal a wholesale institutional retreat from crypto. But it highlights a shift in risk tolerance as macro conditions tighten and token prices remain volatile. Investors will be watching forthcoming SEC filings, on-chain flows from corporate wallets, and Ethereum’s price trajectory for signs of further repositioning among public companies.
The episode illustrates a more sober phase for crypto treasury experiments, one defined less by rapid accumulation and more by capital discipline and balance sheet management.
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