A notable surge in ETHZilla’s stock price, exceeding 90% in extended trading sessions, followed the public disclosure of Peter Thiel’s acquisition of a 7.5% stake in the company, signaling significant investor interest in its strategic pivot towards an Ethereum-focused treasury reserve model. According to recent SEC filings, Thiel’s investor group beneficially owns over 11 million shares of ETHZilla, which trades under the ticker ATNF. This investment marks ETHZilla as the second Ethereum treasury firm within Thiel’s expanding portfolio, complementing his earlier stake in BitMine Immersion Technologies, a firm holding nearly $5 billion in Ethereum reserves. Thiel’s continued investments highlight his confidence in blockchain and crypto markets.
ETHZilla’s stock soars over 90% after Peter Thiel acquires a 7.5% stake, reinforcing his Ethereum treasury focus.
ETHZilla’s strategic transformation, announced in late July 2025, involves reallocating capital towards Ethereum acquisitions and income-generating yield farming assets, alongside expanding its operations within the iGaming sector. The company successfully raised over $425 million through a private placement and an additional $156 million via senior secured convertible bonds due in 2028, reflecting investor confidence in its new business model. Moreover, ETHZilla is monetizing its legacy biotech intellectual property to support this shift, demonstrating a thorough approach to funding its blockchain-oriented initiatives. This move also exemplifies the broader institutional involvement trend in Ethereum investments. Such strategic shifts reflect the evolutionary pressures altcoins face to innovate or risk obsolescence in a competitive market.
The market reaction was immediate and pronounced, with ETHZilla’s shares gaining more than 11% during regular trading hours and surging roughly 57% in after-hours trading, culminating in a pre-market increase exceeding 34%, which brought the company’s market capitalization close to $20 million. This volatility underscores the broader appetite among investors for crypto-integrated corporate treasury models, although similar Ethereum-related stocks exhibited mixed performance on the same day, indicating selective enthusiasm. While the price movements suggest optimism, the inherent risks associated with shifting from a biotech firm to a blockchain-focused treasury should temper expectations.
Peter Thiel’s investment strategy appears to emphasize long-term growth potential driven by Ethereum’s network upgrades and institutional adoption, reflecting confidence in the maturation of Ethereum as a programmable blockchain suitable for enterprise use. The alignment of ETHZilla’s objectives with this vision highlights the increasing institutional interest in diversified Ethereum treasury approaches, yet the company’s success will depend on effective execution amid evolving regulatory and market conditions. This underscores the ongoing challenges altcoins face navigating complex regulatory frameworks while pursuing innovation and market share.
