I saw the news that Peter Thiel's Founders Fund sold all their shares of ETHZilla. It was revealed in SEC filings, and as of the end of last year, they had completely zeroed out their position. They used to hold 7.5%.

This company was originally a biotech firm called 180 Life Sciences, but it converted into an Ethereum treasury farm, accumulating over 100k ETH at its peak. In August last year, the stock price rose to $107, and at that time, crypto asset treasury stocks were very popular. It was during a period when many companies were trying to imitate Michael Saylor’s Bitcoin holding strategy.

But when the market peaked in October, panic selling suddenly erupted. ETHZilla sold $40 million worth of ETH and then further offloaded an additional $74.5 million. As of December 30, the stock price was just $4.99. That’s a 95% loss from the summer peak. They spun off a new jet engine leasing business and seem to be trying to retain investors through tokenization, but the wave of bubble collapse was probably huge.

Seeing the withdrawal of Founders Fund, it really feels like trust in these digital asset treasury stocks is genuinely shaken. When a well-known VC pulls out, it indicates that investor sentiment has cooled significantly.