Peter Thiel's Founders Fund Cuts Ties with ETHZilla Amid Crypto Market Downturn

Peter Thiel's Founders Fund has fully divested from ETHZilla, a digital asset treasury firm that holds Ethereum, amid mounting pressure on treasury firms during the crypto market downturn. The move follows a broader market decline, with Ethereum falling 28.4% in Q4 2025 and continuing to decline in 2026. Other digital asset treasury firms, such as BitMine, are also facing headwinds, with unrealized losses exceeding $7 billion and share prices down 25.7% year-to-date.