In the summer of 2025, ETHZilla was one of the biggest names in the corporate crypto trend. The company became popular for holding large amounts of Ethereum [ETH] as its main business strategy.
With a 7.5% stake from billionaire investor Peter Thiel, the stock attracted considerable attention. But that story has now changed.
Recent SEC filings show that by the end of 2025, Thiel and his Founders Fund had quietly sold their entire stake, cutting their 11.59 million shares down to zero.
This marks a dramatic shift. At one point, the stock had surged nearly 200% just on news of Thiel’s involvement. Since then, it has fallen about 97% from its peak.
ETHZilla stock price action
The bigger issue is that ETHZilla itself is changing direction. As of the 18th of February, with the stock trading around $3.51, the company has moved away from its Ethereum Treasury model.
Instead of focusing on holding ETH, it is now selling its crypto reserves to reduce debt and invest in commercial aerospace engines.
That said, Peter Thiel’s exit came at a time when the crypto-treasury strategy was facing serious pressure.
While companies like Michael Saylor’s Strategy found success holding Bitcoin, ETHZilla’s attempt to copy that model with Ethereum did not go as planned.
Market conditions and price volatility made the strategy much harder to sustain.
How is ETH reacting?
The Ethereum OI-weighted funding rate chart from mid-January to mid-February 2026 shows heavy volatility followed by a period of weakness. In late January, as ETH fell from around $3,400, funding stayed mostly positive.
Source: Coinglass
Between mid-January and mid-February 2026, Ethereum fell sharply from around $3,400 to near $1,900.
During this drop, many traders kept buying the dip using borrowed money, which increased risk and helped push prices lower.
The large red spikes in early February show major liquidations, when too many traders were forced out near $1,900. These moments often mark short-term bottoms, as weak positions are cleared.
By mid-February, trading activity slowed. ETH moved sideways near $2,100, and funding dropped, showing low confidence and weak demand. With neither buyers nor sellers taking strong positions, prices remain fragile.
Since funding mainly reflects Futures trading, it does not fully show spot market selling, making it an incomplete signal.
For ETHZilla, which once held over 82,000 ETH, this volatility was not just market noise, it threatened the company’s financial stability.
With its stock down 30% in a month and Ethereum struggling, ETHZilla decided to change direction. The company sold about $74.5 million worth of ETH, not to buy more crypto, but to launch ETHZilla Aerospace.
Not everyone is quitting
This comes at a time when Bitmine Immersion Technologies now holds about 4.37 million ETH, equal to nearly 3.6% of all circulating supply.
Additionally, the Harvard Management Company recently reduced some of its Bitcoin ETF exposure and added about $86.8 million in Ethereum through a fund by BlackRock.
This shows that major institutions do not see current market weakness as a reason to leave. Instead, they see it as a chance to rotate into Ethereum while prices are still low.
Final Summary
- ETHZilla’s collapse shows that not every crypto treasury model can survive long-term market stress.
- Peter Thiel’s exit reflects the failure of one strategy, not the end of institutional interest in Ethereum.
Source: https://ambcrypto.com/ethzilla-crashes-97-thiel-exits-the-ethereum-treasury-model/
