Billionaire investor Peter Thiel has acquired a 7.5% stake in 180 Life Sciences Corp., which is rebranding as ETHZilla and shifting its business model to accumulate Ethereum and generate blockchain-based returns. The investment, disclosed through a Securities and Exchange Commission filing signed by Thiel on August 11, represents his second major bet on corporate Ethereum treasury strategies within a month.
What to Know:
- Thiel's Founders Fund entities now hold roughly 11.6 million shares of the company, worth about 7.5% of outstanding stock
- ETHZilla disclosed holdings of 82,186 Ether valued at approximately $349 million, purchased at an average price of $3,806.71
- The investment follows Thiel's recent 9.1% stake in BitMine Immersion Technologies, another Ethereum-focused public company
Market Response And Company Transformation
The market reacted swiftly to news of Thiel's investment. ATNF shares more than tripled on Tuesday, closing at $10.24, representing a 207% jump from Monday's close before retreating in after-hours trading.
ETHZilla's business pivot represents a fundamental shift from its previous operations. The company has committed substantial resources to its Ethereum strategy, raising $425 million through a private placement on August 4. One week later, it secured an additional $156 million through senior secured convertible notes due in 2028.
Executive chairman McAndrew Rudisill outlined the company's approach in SEC filings. "At ETHZilla we have put over $350 million in capital to work since the PIPE transaction we completed last week," Rudisill stated. The funds support what he described as an "on-chain yield generation program through our external asset manager Electric Capital."
The company maintains approximately $238 million in cash equivalents alongside its Ethereum holdings. This dual approach provides operational flexibility while positioning the company as what Rudisill termed a "purpose-built, institutional ETH reserve."
Broader Ethereum Investment Trend
Thiel's ETHZilla investment follows his July disclosure of a 9.1% passive stake in BitMine Immersion Technologies. That earlier filing helped drive a rally in BMNR shares and established Thiel as a significant player in the emerging corporate Ethereum treasury sector.
BitMine has pursued one of the most aggressive Ethereum accumulation strategies among public companies. The firm has amassed approximately 1.2 million Ether, worth roughly $5 billion at current prices. This represents about 20% progress toward its stated goal of controlling 5% of Ethereum's total supply.
Tom Lee, co-founder of Fundstrat and BitMine's board chairman, continues expanding the company's acquisition capacity. On Tuesday, BitMine filed to increase its at-the-market equity program by $20 billion, bringing total capacity to $24.5 billion for additional Ethereum purchases.
The timing of these investments reflects confidence in Ethereum's long-term prospects despite short-term volatility. Both companies explicitly stated their financing goals centered on "rapidly" increasing Ethereum holdings through various market conditions.
Understanding Corporate Cryptocurrency Strategies
Corporate cryptocurrency treasury strategies have emerged as institutional investors seek direct exposure to digital assets. These approaches typically involve companies converting cash reserves or raising capital specifically to purchase cryptocurrencies for long-term holding.
Staking represents another component of these strategies, allowing companies to earn additional returns by participating in blockchain network operations. Ethereum's proof-of-stake consensus mechanism enables holders to earn yields by validating transactions, providing ongoing income beyond potential price appreciation.
On-chain yield generation encompasses various decentralized finance strategies that can produce returns through lending, liquidity provision, and other blockchain-based activities. External managers like Electric Capital specialize in implementing these complex strategies for institutional clients.
Investment Implications And Market Positioning
Thiel's dual investments in ETHZilla and BitMine signal strong conviction in corporate Ethereum strategies. The billionaire's track record includes early investments in Facebook, PayPal, and other technology companies that achieved significant returns.
The investment approach assumes Ethereum appreciation will outpace associated costs including dilution from additional share issuances, financing expenses, and potential mark-to-market losses during price downturns. This calculation requires confidence in Ethereum's long-term growth trajectory. Current market conditions show Ether trading at $4,655, supporting the valuation calculations for both ETHZilla's existing holdings and future accumulation plans. However, cryptocurrency markets remain highly volatile, creating both opportunity and risk for these concentrated investment strategies.
Closing Thoughts
Thiel's consecutive investments in Ethereum-focused public companies demonstrate institutional confidence in cryptocurrency's corporate adoption. The combined $349 million ETHZilla position and BitMine's $5 billion Ethereum holdings represent substantial commitments to this emerging investment category, with both companies planning continued accumulation through various financing mechanisms.