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CryptoMediumUpdated×7•Originally published 18 February 2026•Updated 18 February 2026•

1 min read

Founders Fund Sells 7.5% Stake in ETHZilla Amid 95% Stock Collapse

A dramatic image showing a red downward trend line, a cracked cube with a Bitcoin symbol, and 'SYSTEM FAILURE -99%'. Debris, circuit boards, and broken crypto coins are scattered.

An official SEC 13G/A filing has confirmed that Founders Fund has fully exited its position in ETHZilla, revealing the fund previously held a 7.5% stake before the sale. Known as 'Ethereum's MicroStrategy' for its treasury focus, ETHZilla has seen its share price plummet by 95% since August. The amended filing, personally signed by Peter Thiel, shows that all associated entities now hold a 0.0% stake in the firm. This institutional abandonment follows a controversial $74.5 million liquidation of Ethereum (ETH) intended to settle debts, which triggered investigations into potential securities violations. Analysts suggest that the total exit of such a significant stake by a high-profile backer underscores deep-seated concerns over corporate governance. The outlook remains heavily bearish as the firm faces a combination of regulatory scrutiny and a near-total collapse in market valuation.

4 months ago

Version History

Version 74 months ago

What changed: Added the specific 7.5% stake percentage previously held by Founders Fund prior to the full exit.

Version 64 months ago

What changed: Update includes details on the 95% stock price collapse since August, the company's identity as 'Ethereum's MicroStrategy', and the specific posting date of the SEC filing.

Version 54 months ago

What changed: The story was updated to include official regulatory confirmation of the exit via an SEC Schedule 13G filing, specifying a 0% stake and Peter Thiel’s personal signature on the filing.

Version 44 months ago

What changed: Added details regarding the 3% stock decline in extended trading and identified Peter Thiel as the key figure behind the Founders Fund exit.

Version 34 months ago

What changed: The story was updated to include a new legal probe launched by a law firm into potential securities violations by ETHZilla.

Version 24 months ago

What changed: Updated to identify SEC filings as the official source of the divestment news and introduced the 'DAT Model' as a specific framework now under scrutiny.

Version 14 months ago

What changed: Updated the story to include ETHZilla's liquidation of $74.5 million in ETH to cover debt and fund a share buyback program, alongside the Founders Fund exit.