Founders Fund Fully Exits ETHZilla as Tokenized Jet-Engine Strategy Raises Concerns
Peter Thiel’s Founders Fund has fully divested its stake in ETHZilla, according to a 13G amendment filed with the SEC on February 17. The fund had previously reported a 7.5% holding (11,592,241 shares, roughly $40m) in August 2025. ETHZilla, formerly 180 Life Sciences, launched an Ether (ETH) treasury strategy in mid-2025, raising $425m and expanding holdings above 100,000 ETH via convertible bonds. The company sold 24,291 ETH in December 2025 for $74.5m to repay debt and currently holds about 69,800 ETH. Founders Fund’s exit is linked in reports to ETHZilla’s pivot into tokenized aviation assets through ETHZilla Aerospace, which may have increased strategic and execution risk. The coverage also notes broader institutional movements: BitMine Immersion increased holdings to about 4.325m ETH, while Trend Research sold 651,757 ETH (realizing heavy losses). The articles include a technical snapshot for ETH (price levels, RSI, EMA, support/resistance) and mention BlackRock’s proposed staked-ETH ETF — which would claim ~18% of staking rewards — as a potential structural demand factor. For traders: the exit signals shifting institutional confidence in Ether-treasury corporate models, potential short-term selling pressure on ETH from balance-sheet adjustments, and elevated execution risk for companies pursuing tokenized non-core businesses. Monitor on-chain flows from corporate wallets, convertible-bond maturities, and ETF/regulatory developments for near-term volatility and directional cues.
Bearish
Founders Fund’s full exit from ETHZilla—previously a significant 7.5% shareholder—signals reduced institutional confidence in corporate Ether-treasury models. ETHZilla has already sold a meaningful portion of its holdings (24,291 ETH) to cover debt, and further balance-sheet driven selling or unwind of convertible bonds could create near-term supply pressure on ETH. The added uncertainty from ETHZilla’s pivot into tokenized jet engines raises execution risk and may deter new institutional capital into similar corporate-treasury strategies. Although structural demand drivers such as a potential BlackRock staked-ETH ETF could be bullish over the medium term, the immediate market implication is likely negative: traders should expect heightened volatility and possible downward pressure as investors reprice risk, monitor corporate wallet outflows, and adjust positions ahead of any additional forced selling or refinancing events. Longer-term impact is neutral-to-mixed depending on whether tokenized strategies succeed and whether ETF demand materializes to absorb supply.