Peter Thiel leaves ETHZilla, company sells $74.5 million worth of ETH under market pressure

ETHZilla once held more than 100,000 ETH and liquidated some of it to cover debts and buy back shares.

Peter Thiel and his Founders Fund, through ETHZilla Corp. sold $74.5 million worth of ether (ETH), completely exiting the company’s crypto treasury. The SEC filing confirmed that Thiel’s entities no longer own shares in ETHZilla.

The sales follow a series of ether liquidations by ETHZilla to cover debt and buy back shares. According to DefiLlama, the company previously owned more than 100,000 ETH at its peak.

ETHZilla is facing market pressure

ETHZilla started as a biotech company, 180 Life Sciences Corp., before making the full transition into cryptocurrency management in August. The Palm Beach-based company rebranded and shifted its operations entirely to focus on holding ETH, marking a major change from its original biotech focus.

The timing of this shift coincided with a broader downturn in the crypto market, which immediately impacted the company’s coffers. Ether is down nearly 60% from last year’s peak and was trading around $2,000 at the time of writing. The drop put pressure on ETHZilla’s newly acquired crypto holdings, making careful financial management a priority.

To stabilize its finances, ETHZilla sold ether in October and December. In late October, the company liquidated about $40 million to buy back shares. Two months later, it sold $74.5 million to redeem senior secured convertible notes, according to the filings.

A shift to real-world assets

ETHZilla has launched a subsidiary, ETHZilla Aerospace, to offer tokenized equity in leased jet engines. This move signals a shift toward real-world, asset-backed offerings that go beyond cryptocurrency holdings.

Meanwhile, the company has not publicly commented on Thiel’s departure or the recent ETH sales. However, observers say these actions reflect the financial pressures facing crypto-focused public companies.

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The development particularly underlines the caution that leading investors show in times of volatile markets. It also highlights the challenges of maintaining a public ether treasury during rapid price swings.

Looking ahead, market watchers will be monitoring ETHZilla’s space venture and broader strategy for clues about next steps. The pivot could signal a new approach for digital asset companies looking to generate revenue beyond pure crypto holdings. It also shows how quickly business strategies can evolve in the crypto space.