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Peter Thiel Invests in Ethereum Treasury Company ETHZilla, Triggering Stock Surge
Billionaire investor Peter Thiel has made headlines by securing a 7.5% shareholding in ETHZilla, a company that transitioned from being a biotech firm, known until recently as 180 Life Sciences. This significant investment was disclosed through a recent SEC filing, leading to an immediate surge in ETHZilla’s stock price, which skyrocketed over 200% to close at US$10.24 (approximately AU$15.68). Further momentum has continued in after-hours trading, with the stock price now hovering around US$11.09 (about AU$16.98), according to Yahoo Finance.
Background on ETHZilla
Thiel’s investment comes on the heels of his earlier acquisition of a 9.1% stake in BitMine Immersion, the largest corporate owner of Ethereum, via his venture capital firm, Founders Fund. This move underscores Thiel’s continued interest in the cryptocurrency space.
ETHZilla’s fresh direction marks a pivotal change; the company has shifted its focus from biotechnology to stockpiling Ethereum (ETH). While it will still maintain its biotech operations for supplementary income, the central business strategy is now concentrated on accumulating ETH, following the company’s rebranding just last month.
As of its latest report, ETHZilla holds 82,186 ETH, which was purchased at an average price of US$3,806.71 (approximately AU$5,800). The calculated total investment amounts to around US$313 million (AU$480 million). Current valuations estimate these holdings at about US$349 million (AU$535 million), making ETHZilla the tenth largest corporate holder of ETH shortly after it transitioned to being an Ethereum treasury company.
The Emergence of Ethereum Treasury Companies
The rise of Ethereum treasury companies like ETHZilla reflects a growing trend within the cryptocurrency market. This trend gained traction with companies such as SharpLink Gaming, which have robust ties to the Ethereum ecosystem. This shift opens doors for more corporate entities to invest in Ethereum, positioning them as significant players in the crypto landscape.
Thiel’s Crypto Connections and Political Ties
Peter Thiel’s interest in cryptocurrency is well-documented. Beyond his involvement with Palantir Technologies and related ventures, he has funded significant projects within the crypto space, including the crypto exchange Bullish and the prediction market Polymarket. His background as a co-founder of PayPal lends additional credibility to his ventures in digital currencies.
Moreover, Thiel’s connections extend into the political realm, particularly with right-leaning groups in the United States. He has played a crucial role in shaping the tech industry’s policies during the Trump administration, developing ties with influential figures such as JD Vance and David Sacks, further embedding himself within the political and technological landscape.
Born in Germany and raised in South Africa, Thiel’s ideological leanings have been influenced by his upbringing in a politically charged environment. His experiences there have reportedly led him toward libertarianism, and his close associations with figures in the Trump administration highlight his dual role as a tech entrepreneur and political influencer.
Conclusion
Thiel’s investment in ETHZilla signals a robust endorsement of Ethereum and the potential of treasury companies within the cryptocurrency market. As more institutions explore this nascent investment avenue, ETHZilla represents a potential paradigm shift in corporate engagement with cryptocurrencies, likely setting a precedent for future investments and transformations across the sector. With increasing interest from notable investors like Thiel, the trajectory of Ethereum treasury companies could reshape the landscape of digital asset management and institutional investment strategies.
