ETHZilla Shares Collapse 97% from $107 to $3 after $114.5M ETH Sales
August 2025 investors Peter Thiel and Founders Fund fully exited ETHZilla after shares plunged 97% from $107 to $3, following $114.5 million in Ethereum sales. ETHZilla holds 69,802 ETH valued at $139 million and has pivoted to real-world asset tokenization with $4.7 million in home loans and two aircraft engines.
1. Investor Exit and Stock Collapse
August 2025 investors Peter Thiel and Founders Fund acquired a 7.5% stake following ETHZilla’s pivot to an Ethereum treasury model, causing shares to surge 90% to over $107. Crypto market downturn in October triggered a 97% collapse to $3, prompting full stakeholders’ exit.
2. Ethereum Sales for Buybacks and Debt
In late October ETHZilla sold approximately $40 million in Ethereum to fund stock repurchases, then in December offloaded another 24,291 ETH valued at $74.5 million to pay down senior secured convertible notes. These sales undercut the treasury strategy, highlighting its reliance on rising ETH prices.
3. Real-World Asset Tokenization Pivot
Facing pressure on its accumulation model, ETHZilla acquired 95 manufactured and modular home loans for $4.7 million and two CFM56-7B24 aircraft engines for tokenization. The firm now plans to drive value through revenue and cash flow growth from its real-world asset tokenization business.
4. Current ETH Holdings and Technical Outlook
ETHZilla remains the sixth-largest corporate Ethereum holder with 69,802 ETH valued at about $139 million. Its stock is trading between $2.50 and $5, with Bollinger Bands compressed (upper $5.64, middle $4.10, lower $2.57) and an RSI of 33.78 indicating oversold conditions.