Digital asset treasury companies whose sole business is investing in tokens have fallen out of favor with investors and how.
The billionaire entrepreneur and co-founder of PayPal and Palantir Technologies, the venture capital arm of Peter Thiel, has wiped his ETHZilla slate clean, selling every last share of the ether-hoarding digital asset treasury company late last year, according to new filings with the Securities and Exchange Commission.
Thiel’s founders’ fund now shows a big zero in ownership, down from a 7.5% stake in August of last year.
ETHZilla, a Palm Beach-based crypto investment firm, is imitating Michael Saylor’s Bitcoin hoarding company, Strategy (MSTR). ETHZilla started as a bankrupt biotech stock called 180 Life Sciences, before pivoting to Ethereum (ETH) treasury, amassing over 100,000 ETH tokens at its peak.
The fund panicked, however, when markets peaked in early October and $40 million of ether was dedicated to redemptions, then another $74.5 million in December to reduce convertible note debt. According to Bloomberg, the company is pivoting strongly again, creating ETHZilla Aerospace to offer investors token slices of leased jet engines.
