🚨 ETHZILLA STRUGGLES AS PETER THIEL’S FOUNDERS FUND FULLY EXITS
📉 Billionaire investor Peter Thiel and Founders Fund have completely liquidated their entire 7.5% stake in ETHZilla, according to recent SEC filings.
⚠️ The exit triggered immediate market pressure, with the stock dropping in pre-market trading and now sitting roughly 97% below its 2025 peak.
🧠 Thiel’s backing was previously seen as a major institutional endorsement of the Ethereum treasury model, making the full divestment a significant sentiment shock.
🔍 ETHZilla had pivoted from a biotech firm to a leveraged Ethereum treasury strategy, but heavy debt and forced ETH sales to repay liabilities weakened investor confidence.
📊 The company is now attempting another strategic shift toward tokenized real-world assets like jet engines and other RWA products to stabilize operations.
🚨 Overall, the “smart money exit” is being interpreted as a stress signal for Ether-focused treasury companies, especially in a volatile and liquidity-tight crypto market.