This exit delivered what many see as the final blow to an already weakened share price. After once climbing above $107 on the back of Thiel’s backing, the stock plunged nearly 97% following news of his departure, falling toward the $3 range.

From Peak Accumulation to Panic Selling

The warning signs had been building for months.

Last August, the company abruptly pivoted away from its biotech roots and launched an aggressive Ethereum treasury strategy, ultimately accumulating more than 100,000 ETH at its peak.

But after the market topped out in October, sentiment flipped. ETHZilla first sold roughly $40 million worth of ether to fund share buybacks. Then, in December, it unloaded an additional $74.5 million in ETH to retire convertible debt. The accumulation narrative officially gave way to liquidation.

Aviation and RWA: A New Bet

As the digital asset treasury model lost credibility with investors, management opted for yet another strategic pivot. ETHZilla is now targeting real-world asset (RWA) tokenization, focusing on items such as aircraft engines and prefabricated housing loans.

The plan is to tokenize these assets using Ethereum Layer-2 infrastructure, aiming for annual yields of around 10%.

Even this dramatic shift failed to keep Thiel onboard. His investment arm now shows a clear zero position.

Market participants aren’t viewing this merely as a single investor exit. Instead, many see it as a broader loss of confidence in aggressive crypto treasury strategies adopted by publicly traded companies.

Where Does ETHZilla Stand Among Corporate ETH Holders?

Current data indicates that ETHZilla still holds approximately 69,802 ETH, placing it sixth among institutional Ethereum holders.

However, the gap versus the industry leader is enormous. Bitmine Immersion Technologies reportedly controls more than 4.3 million ETH, with holdings valued in the billions of dollars.

The Message the Market Is Sending

A full exit by a long-term visionary investor like Thiel is a powerful signal.

ETHZilla is now attempting to rewrite its story through aviation tokenization and RWA projects. For now, the market remains cautious.

Once celebrated for its Ethereum treasury strategy, the company is now fighting to restore credibility. Whether this new aviation-focused pivot can revive its former momentum—or proves to be only a temporary detour—will become clearer over the coming quarters.

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