Founders Fund Cuts Entire 7.5% ETHZilla Stake After $114.5M Ether Sales
Founders Fund reduced its ETHZilla stake from 7.5% to zero by the end of 2025, fully divesting from the Ethereum treasury firm. This exit follows ETHZilla’s sales of about $114.5 million in Ether to fund debt repayments and buybacks, leaving it with 69,802 ETH.
1. Full Divestment by Founders Fund
By the end of 2025, Founders Fund’s entities reported zero ownership in ETHZilla, a sharp decline from a previously disclosed 7.5% stake. The complete exit signals a strategic pullback by a major institutional backer from the firm’s Ethereum treasury approach.
2. ETHZilla’s Ethereum Holdings
At its peak, the company held more than 100,000 ETH, positioning itself as a key corporate treasury innovator. Following two rounds of sales, its balance now stands at 69,802 ETH, representing a significant reduction in on-balance-sheet crypto assets.
3. Use of Proceeds from Ether Sales
In late October, ETHZilla sold roughly $40 million in Ether to fund share buybacks, and in December offloaded about $74.5 million to repay senior secured convertible debt. These moves were aimed at shoring up the balance sheet amid sustained market weakness.
4. Market and Valuation Implications
The departure of high-profile capital may weigh on investor sentiment toward ETHZilla’s risk profile and growth outlook. Reduced support from a marquee backer and shrinking crypto reserves could pressure the stock valuation if market conditions remain volatile.