Peter Thiel, a prominent venture capitalist known for co-founding PayPal and Palantir Technologies, has decided to fully divest from ETHZilla. This company, which centers its treasury on Ethereum, recently saw the Founders Fund liquidate all 11.6 million shares it had acquired just over a year ago, reflecting a notable shift in investment strategy. As of December 31, 2025, the founder's exit counters earlier investor optimism towards Ethereum-led corporate strategies.
ETHZilla's stock experienced a 5% decrease in after-hours trading, further compounding the decline that has seen shares fall by 28% since the beginning of the year, according to Yahoo Finance. The company finds itself grappling with substantial financial difficulties, characterized by negative operating margins and an Altman Z-Score of -0.54, which suggests heightened bankruptcy risks within the next two years.
After previously transforming from a biotechnology firm to an Ethereum-focused treasury model in mid-2024, ETHZilla is now attempting yet another pivot. The firm has established ETHZilla Aerospace, with the intention of providing tokenized equity related to leased jet engines. This latest venture attempts to capitalize on emerging opportunities within the aerospace sector amid ongoing challenges.