Companies once highly sought after in the capital markets and focused on accumulating cryptocurrencies now seem to have become “hot potatoes” that investors are eager to sell off. According to SEC filing documents, the venture capital fund Founders Fund, led by PayPal co-founder and Silicon Valley venture capital legend Peter Thiel, sold all of its holdings in the crypto accumulation company ETHZilla at the end of last year.
Last August, Founders Fund still held a 7.5% stake in the company, but within just a few months, this large holding was “zeroed out.”
ETHZilla, formerly known as underperforming biotech stock 180 Life Sciences, later pivoted to a strategy of holding Ethereum reserves, at one point accumulating over 100,000 ETH.
Although SEC filings did not disclose the exact timing and prices of the fund’s buying and selling activities, reviewing the initial disclosure of holdings in August last year coincides with ETHZilla’s stock price soaring, reaching an all-time high of nearly $107.
At that time, market hot money was flooding into “crypto accumulation stocks,” with many companies jumping on the bandwagon after seeing the success of the strategy, attempting to boost their valuations through blockchain-related themes.
However, the good times did not last. As the hype faded and bubbles burst, many of these once-celebrated crypto accumulation companies quickly lost their shine, and ETHZilla was no exception.
To ease the heavy convertible bond repayment pressure, ETHZilla first sold $40 million worth of ETH in October last year, then sold an additional $74.5 million worth of ETH in December. This core asset liquidation to pay off debt completely shattered investor confidence.
By December 30 last year, ETHZilla’s stock price had plummeted to a miserable $4.99, a roughly 95% drop from its summer peak.
Seeing the crypto accumulation bubble burst completely, ETHZilla, now in dire straits, decided to try another “transformation.” In February this year, the company announced the spin-off of a new entity called ETHZilla Aerospace. This time, they moved away from accumulating crypto and shifted their focus to the currently hottest market trend: tokenization of real-world assets (RWA).
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Ethereum Spot ETF saw net outflows of $41.9715 million yesterday, marking three consecutive days of capital outflows
March 22 News: Ethereum spot ETFs experienced a net outflow of $41.9715 million on March 20, marking the third consecutive day of capital outflows. Among these, BlackRock's Staked ETH ETF had a net inflow of $5.4658 million, while BlackRock's ETF ETHA saw a net outflow of $31.4508 million. Currently, Ethereum spot ETFs have total net assets of $12.328 billion, with cumulative net inflows of $11.729 billion throughout history.
GateNews26m ago
A certain whale withdrew 1,979 ETH from a certain CEX 1 hour ago, worth 4.16 million USD.
Gate News: On March 22, according to Onchain Lens monitoring, a whale withdrew 1979 ETH from a certain CEX 1 hour ago, valued at $4.16 million. Over the past month, the whale has cumulatively withdrawn 8662 ETH through the exchange, with a total value of $18.23 million.
GateNews41m ago
Resolv Attacker Spent 200,000 USDC to Mint 80 Million USR, Already Purchased 9,111 ETH
Onchain Lens detected that the Resolv attacker spent 200,000 USDC to mint 80 million USR and has already used it to purchase 9,111 ETH. The attacker is still converting USR to other cryptocurrencies and may continue to accumulate ETH.
GateNews42m ago
Attacker has bought in 4.55 million dollars of ETH
Gate News Report: On March 22, on-chain analyst Ai Auntie posted an analysis on X platform regarding the Resolve attacker's operations: 1. Minted 50 million USR tokens using 100,000 USDC; 2. Converted 35 million USR to wstUSR; 3. Continuously exchanged wstUSR for USDC and USDT; 4. Used USDT to purchase
GateNews1h ago
CFTC clarifies cryptocurrency margin rules: BTC and ETH capital deduction rate of 20%, permitting investment in the derivatives market
The U.S. Commodity Futures Trading Commission (CFTC) recently released an FAQ clarifying the rules for using cryptocurrencies as margin in derivatives markets, specifically setting capital deduction rates of 20% for Bitcoin and Ethereum and 2% for stablecoins. The pilot program will be limited to three coin types in the first three months, after which it will expand to additional cryptocurrencies and relax reporting requirements. Qualifying crypto assets may be used as margin, marking a gradual acceptance of blockchain assets within the U.S. financial system.
動區BlockTempo1h ago
Brother Maji Huang Licheng Opens 25x Leverage ETH Long Position Again, Holding 2200 Coins Worth $4.62 Million
Gate News: On March 22, Hyperbot data shows that the decline in the cryptocurrency market this morning led to the liquidation of all of Big Brother Machi Huang Lixuan's Ethereum long positions. One hour ago, Huang Lixuan opened a new Ethereum long position with 25x leverage, currently holding 2,200 ETH, valued at approximately $4.62 million, with an entry price of $2,091 and a liquidation price of $2,061.
GateNews1h ago
