Key Takeaway:
- Founders Fund exits ETHZilla amid mounting strain on Ethereum-based treasury model.
- Company redeems senior secured convertibles, cutting coupon costs and dilution risk.
- ETHZilla pivots toward real-world asset tokenization; retires mNAV disclosure metric.
Peter Thiel’s Founders Fund has fully exited ETHZilla Corp., with the divestment completed by year‑end 2025 per securities disclosures, according to CryptoBriefing. The exit aligns with mounting pressure on the company’s Ethereum treasury model and financing flexibility.
ETHZilla has prioritized balance‑sheet repair, including redeeming senior secured convertible debt and pivoting toward real‑world asset tokenization, according to CoinQM. Reducing secured, convertible obligations can lower coupon expense and remove potential dilution triggers tied to conversion features.
LiveBitcoinNews reported that ETHZilla discontinued its mNAV dashboard, which had juxtaposed market capitalization with the value of its crypto treasury. NAV reflects assets minus liabilities; mNAV compared equity value to that base. Retiring the metric suggests a shift in disclosure focus as management reframes valuation beyond on‑chain holdings.
An SEC filing confirms Founders Fund’s ownership fell to zero by December 31, 2025, as reported by Bloomberg. The filing formalizes the transition from a significant early backer to a fully exited shareholder.
Earlier stake reductions, to roughly 5.6% before the final exit, were noted by CoinNewsByte, providing a timeline of progressive divestment. Interpretations vary between a portfolio rebalancing rationale and a signal of waning institutional appetite for Ethereum treasury exposure.
HTX News detailed that ETHZilla sold about 24,291 ETH, roughly $74.5 million, to redeem senior secured convertible debt, a move that reduces leverage but trims on‑chain reserves. Critics argue such sales crystallize volatility risk and constrain future optionality. “Embarrassing destruction of shareholder value,” said HTX News, summarizing one analyst’s reaction to the debt‑driven ETH offload.
At the time of writing, Ethereum traded near $2,020.61 with 18.04% 30‑day volatility and an RSI‑14 around 35.5, based on data from BeInCrypto. These metrics provide context but do not imply directional outlook.
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