 ▲ Ethereum (ETH) |
Silicon Valley billionaire investor Peter Thiel has exited his position entirely in Ethereum treasury-focused firm ETHZilla (ETHZ), as the company faces a deepening stock decline following its strategic shift.
Peter Thiel, the billionaire entrepreneur and co-founder of PayPal and Palantir Technologies, has sold all of his holdings in ETHZilla. According to filings with the U.S. Securities and Exchange Commission (SEC), Thiel’s venture capital firm Founders Fund disposed of its entire 7.5% stake, which it held as of last August, reducing its ownership to 0%. The move is interpreted as a signal that major investors are losing confidence in treasury firms focused solely on digital asset investments.
ETHZilla, formerly known as biotech company 180 Life Sciences, had built a crypto-based treasury structure and at one point held more than 100,000 ETH. However, after experiencing a sharp drop in Ethereum prices, the company began offloading a significant portion of its holdings. Last month, it sold approximately 24,000 ETH to repay outstanding debts and now holds 69,802 ETH. The rapid liquidation of assets has accelerated the departure of existing investors.
In response to continued Ethereum sell-offs, ETHZilla shifted its business focus to tokenization last week by launching its first tokenized aviation asset, Eurus Aero Token I. McAndrew Rudisill, Chairman and CEO of ETHZilla, stated, “Providing tokens backed by engines leased to major U.S. airlines will serve as a strong case for applying blockchain infrastructure to aviation assets.” Despite the announcement of this strategic transformation, market reaction has remained lukewarm.
Following the launch of the new token, ETHZilla’s stock fell about 3% and is trading around $3.40. Over the past month, shares have plunged 37%, reflecting severely weakened investor sentiment. The market’s disappointment in what was expected to serve as a bridge between traditional finance and digital assets appears to be fully priced in. Founders Fund’s full liquidation of its stake reportedly occurred shortly after the company revised its strategy and began token sales.
Ultimately, the failure of its Ethereum-centered treasury strategy combined with an abrupt business expansion seems to have backfired. The departure of a high-profile investor is expected to undermine confidence in ETHZilla’s aviation asset tokenization venture as well. Whether the company, having turned to real-world asset tokenization amid crypto market volatility, can restore its battered stock price and regain investor trust will likely determine its future survival.
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