Peter Thiel and Founders Fund now hold 0.0% stake in ETHZilla, according to a 13G/A filing on February 17, marking the end of a grand experiment in the crypto world.
At the time of writing, Ethereum is at $1,964.45, up 0.03% since it opened early Thursday in Asian trading.
Thiel, who was once a major shareholder, is now out entirely, a move that sends a strong message to the market about the challenges facing the company.
ETHZilla has come up with a bold idea to emulate Strategy’s model, but with Ethereum.
Where Strategy builds its narrative as a public company holding Bitcoin, ETHZilla wants to be a bridge for equity investors to gain exposure to ETH without having to own crypto themselves.
Stocks serve as a proxy for Ethereum, while Nasdaq serves as a stage for this strategy.
But the reality of the market is much more challenging. Since August 2025, ETHZ shares have plummeted by almost 95%, from around $74 to around $3.50.
During that time, the company has had to sell thousands of millions of dollars worth of ETH to cover financial stress and then redeem hundreds of millions of dollars worth of convertible notes, including premiums and interest.
All of this suggests that capital employed is not cheap, and the market no longer leaves room for error.
The real problem lies in the structure of the treasury model itself.
It relies on shares trading at a premium, funding costs are low, and returns from staking or futures carry are large enough to cover the financial cycle.
When staking yields are around 2–3% per year and derivative carries are also low, every management decision becomes more critical, and the market starts to value a company’s execution more than just the value of the Ethereum it holds.
Thiel’s exit may not answer the ‘why’ question, but the 0.0% figure itself is a clear enough signal that grand narratives can be tested by market realities, and that seemingly sound strategies can become fragile when circumstances change.
