PiCK

Ethereum’s sharp drop reverberates… Peter Thiel sold his entire stake in ETHZilla

JOON HYOUNG LEE

Summary

Founders Fund reportedly made a strategic sale of its 5–6% stake in Nasdaq-listed ETHZilla, exiting the position in full.
The sale was interpreted as a decision that takes into account the sharp drop in Ethereum (ETH) prices and the underperformance of ETHZilla’s Digital Asset Treasury (DAT) strategy.
ETHZilla said it has scrapped the DAT strategy and shifted to real-world asset (RWA) tokenization, including moves such as purchasing aircraft engines as part of its pivot to tokenizing physical assets.

Founders Fund, the venture capital firm led by PayPal co-founder Peter Thiel, is reported to have sold off its entire stake in Nasdaq-listed ETHZilla.

According to Watcher.Guru on the 18th (local time), Founders Fund recently made a strategic sale of its ETHZilla holdings. The firm is said to have held a 5–6% stake after investing in ETHZilla in August last year.

The move to fully exit ETHZilla is seen as a response to Ethereum (ETH)’s recent steep price decline. After adopting a Digital Asset Treasury (DAT) strategy last year, ETHZilla steadily accumulated Ethereum. However, as Ethereum’s price remained weak from the second half of last year, the company sold portions of its Ethereum holdings on several occasions.

ETHZilla has recently scrapped its DAT strategy altogether and pivoted toward a real-world asset tokenization strategy. This context also underpins its recent decision to establish a subsidiary, “ETHZilla Aerospace,” and purchase two aircraft engines.

ETHZilla has said, “Going forward, the company’s value will be determined by the growth in revenue and cash flow generated by the tokenization business for real-world assets (RWA).”

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