Digital asset finance companies specializing in token investments have lost favor with investors and how.
Billionaire entrepreneur and PayPal and Palantir Technologies co-founder Peter Thiel’s venture capital arm has completely purged ETHZilla, selling all shares of the ether-hoarding digital asset finance company by the end of last year, new filings with the U.S. Securities and Exchange Commission reveal.
Thiel’s Founders Fund’s stake is now substantially zero, down from 7.5% last August.
ETHZilla is a Palm Beach-based cryptocurrency investment firm modeled after Michael Saylor’s Bitcoin hoarding company Strategy (MSTR). ETHZilla started out as a failed biotech stock called 180 Life Sciences before pivoting heavily into Ethereum (ETH) vaults, amassing over 100,000 ETH tokens at its peak.
However, as the market peaked in early October, the fund panicked and bought back $40 million in ether, then added another $74.5 million in December to reduce debt on convertible notes. The company is pivoting again, spinning off ETHZilla Aerospace to offer investors tokenized slices of leased jet engines, Bloomberg reported.
