Peter Thiel, along with his Founders Fund, has divested $74.5 million worth of ether (ETH) through ETHZilla Corp., marking a complete exit from the company’s crypto treasury. This action was confirmed in a recent SEC filing, which disclosed that Thiel’s entities no longer possess shares in ETHZilla.

The divestment follows a series of ether liquidations implemented by ETHZilla to address outstanding debts and buy back stocks. At its highest point, the company had a treasury comprising over 100,000 ETH, as indicated by DefiLlama.

ETHZilla Under Market Strain

ETHZilla began as 180 Life Sciences Corp., a biotech firm, before transitioning entirely into cryptocurrency management in August. This change resulted in a complete rebranding and a recommitment to holding ETH, indicating a significant departure from its original business model.

The timing of this pivot closely aligns with a downturn in the crypto market, affecting the treasury’s state. Ether prices have dropped nearly 60% from their peak a year ago, hovering around $2,000 at the time of writing. This decline has emphasized the need for prudent financial management within ETHZilla’s newly formed crypto assets.

To stabilize its financial position, the company sold ether in October and December. In late October, it liquidated approximately $40 million to repurchase shares. Two months later, it sold $74.5 million to repay senior secured convertible notes, as reported in official filings.

Transition to Tangible Assets

In a notable shift, ETHZilla has introduced a subsidiary, ETHZilla Aerospace, aimed at providing tokenized equity in leased jet engines. This development suggests a movement towards real-world, asset-backed offerings that extend beyond their cryptocurrency holdings.

While the company has refrained from issuing public comments regarding Thiel’s departure or the recent sales of ETH, industry observers suggest these measures reflect the financial pressures faced by publicly traded firms focused on cryptocurrency.

As market observers, we look forward to seeing how ETHZilla’s aerospace venture and overall strategy evolve in response to market conditions. This pivot may reveal a new direction for digital asset companies exploring revenue avenues outside of conventional crypto holdings, illustrating the rapid adaptability required in the crypto landscape.