Peter Thiel's Fund Exits ETHZilla Completely by Year End

Well, this is interesting. Peter Thiel's Founders Fund has completely dumped its ETHZilla holdings, according to fresh SEC filings that just dropped. By December 31, 2025, they held exactly zero shares in the ether treasury company.

For those keeping score at home, this marks a pretty dramatic shift. ETHZilla, which basically acts like a crypto version of MicroStrategy but for ether instead of bitcoin, has been one of those polarizing plays in the space. Some investors love the leveraged exposure to ETH. Others? Not so much.

What's catching my attention here is the timing. The fund didn't just trim their position or reduce exposure gradually. They went from holding shares to completely out. That's... notable. Especially considering Thiel has been pretty vocal about crypto's potential over the years. Remember his early bitcoin bets?

The market's doing something interesting today with this news. ETHZilla shares are already feeling the pressure in pre-market trading, though honestly, when a major backer like Founders Fund exits stage left, that's kind of expected. The bigger question is whether this signals broader concerns about ether treasury strategies or if it's just portfolio rebalancing.

I'm watching to see if other institutional holders follow suit. Sometimes these moves are isolated decisions. Sometimes they're the first domino. Given that we're in February 2026 and the crypto market has been on quite a ride lately, this could go either way.