Peter Thiel Cuts Ties With ETHZilla as Treasury Firms Face Mounting Pressure

Core Insights - Peter Thiel's Founders Fund has completely divested from ETHZilla, a digital asset treasury firm holding Ethereum, amid a downturn in the crypto market [1][4] - The digital asset treasury strategy gained traction last year, with firms accumulating cryptocurrencies as reserve assets, but the current market conditions have led to significant pressure on these firms [2][4] Company Performance - ETHZilla, formerly known as 180 Life Sciences, has faced challenges due to the declining value of Ethereum, reducing its holdings from over 100,000 ETH to 69,802 ETH [8][9] - The company has executed multiple sales of Ether, including a $40 million sale for share buybacks and a subsequent $74.5 million sale to repay debt [8][9] Market Context - Ethereum experienced a 28.4% decline in Q4 2025, marking its first negative fourth quarter since 2022, with further declines in early 2026 [5] - The broader crypto market has been under pressure, with significant losses reported by digital asset treasury firms, including BitMine, which has unrealized losses exceeding $7 billion [7]