Peter Thiel Divests Entire Stake in ETHZilla – Stock Plunges 97 Percent
The tech billionaire and his Founders Fund have completely withdrawn from the Ether treasury company ETHZilla, whose stock has fallen dramatically since August.
Tech billionaire Peter Thiel and his venture capital fund Founders Fund have sold off their entire stake in the Ether treasury company ETHZilla Corp. As recently as August, the fund held 7.5 percent of the shares, but now there are no shares remaining in the portfolio of companies managed by Thiel [1].
ETHZilla pursues a business model modeled after Michael Saylor's Bitcoin treasury approach: The company raises capital through stock and bond issuances and invests these funds primarily in Ether (ETH). The Palm Beach-based company only converted in August from a biotech corporation named 180 Life Sciences Corp. into a pure Ether treasury [1].
However, the strategy is under considerable pressure. At its peak, ETHZilla held over 100,000 ETH, but had to sell Ether worth approximately $40 million in October for share buybacks. In December, another sale of $74.5 million followed to repay convertible bonds. Currently, the company holds only 65,786 ETH [1].
The market has reacted drastically: Since its August high, ETHZilla stock has plummeted by approximately 97 percent and is trading at around $3.50 [1].
Sources
- [1]btc-echo.de
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