Billionaire investor Peter Thiel has pulled out of ETHZilla, divesting its complete investments in the Ethereum treasury firm. This surprising move comes following a 3% slip in the ETHZ stock price following the launch of the Eurus Aero Token I.
Peter Thiel Backs Out of ETHZilla
According to the latest SEC filing, billionaire entrepreneur and co-founder of PayPal and Palantir Technologies, Peter Thiel, has completely exited ETHZilla. Now, Thiel’s Founder Funds reports zero ownership in the Ethereum treasury company, down from a 7.5% stake last August.
Notably, Peter Thiel sold his whole shares of ETHZilla via his venture firm. The filing states that this sell-off was successfully completed by the end of last year. This indicates how large investors are losing interest in digital asset treasury firms that focus exclusively on token investments.
ETHZilla, which began as a biotech firm called 180 Life Sciences, later switched its focus to Ethereum and built a crypto treasury with more than 100,000 ETH. However, it began selling its ETH holdings amid the Ethereum price crash. Last month, the firm sold about 24,000 tokens to settle outstanding debt obligations. According to CoinGecko data, the company now holds only 69,802 tokens.
ETHZilla Shifts Focus from DAT
Following the continuous Ethereum selloff, ETHZilla announced the launch of its first tokenized aviation offering last week. With the launch of the Euros Aero Token I, the platform signals its shift of focus from Ethereum treasury to tokenization.
ETHZilla Chairman and CEO McAndrew Rudisill stated,
Following this announcement, the ETHZilla stock price has declined by about 3%. Currently, the ETHZ shares are priced at $3.4, down by about 1.7%. Over the past month, the stock has plummeted by a massive 37%.
Source: Yahoo Finance; ETHZilla Stock PriceThis focus shift and the subsequent stock dip have significantly influenced the decision of Peter Thiel’s Founder Funds. The traditional finance (TradFi) platform, which focuses on venture capital, cashed out its entire stake in the Ethereum treasury company only after the firm started selling the tokens, marking a shift in its strategy.
Source: https://coingape.com/peter-thiel-exits-ethzilla-as-stock-slides-3-amid-token-launch/
