In recent developments, tech investor Peter Thiel is significantly increasing his involvement in Ethereum-related investments. An updated Schedule 13G with the US Securities and Exchange Commission indicates that Thiel’s Founders Fund has acquired a 7.5% passive stake in 180 Life Sciences Corp. (Nasdaq: ATNF), which is rebranding to ETHZilla and focusing on the acquisition of Ether as well as on-chain yield generation.
Thiel’s Strategic Shift Towards Ethereum
The SEC filing, dated August 11 and signed by Thiel, confirms that multiple entities within the Founders Fund collectively hold around 11.6 million shares of ATNF, equivalent to 7.5% of the company’s float. This news sent shockwaves through the market, leading to a tripling of ATNF’s stock price on August 15, ultimately closing around $10.24 — a staggering 207% increase from the previous day.
The transition to ETHZilla is backed by a substantial ETH investment. A press release released on August 12 detailed that the company holds 82,186 Ether (ETH), acquired at an average price of $3,806.71, amounting to an estimated $349 million as of August 11. Furthermore, ETHZilla has reported $238 million in cash equivalents on its balance sheet.
Executive chairman McAndrew Rudisill emphasized this as a calculated move to establish an institutional reserve of ETH designed for staking and generating yield through external management. “At ETHZilla we have strategically invested over $350 million in capital since our recent PIPE transaction…aiming to enhance our yield generation efforts with the help of our asset management partner, Electric Capital,” stated Rudisill.
This acquisition strategy is accelerating, as evidenced by the rapid succession of financing rounds. On August 4, ETHZilla finalized a $425 million private placement, followed by an additional $156 million in senior secured convertible notes due in 2028, aiming for quick expansion of their ETH holdings.
Thiel’s interest in ETHZilla comes shortly after revealing a 9.1% stake in BitMine Immersion Technologies (NYSE American: BMNR), recognized for being an aggressive player in the “ETH treasury” landscape. That previous filing also signaled Thiel’s ongoing commitment to Ethereum investments, correlating with a significant stock price boost for BMNR.
In a notable turn of events, BitMine announced plans this week to expand its at-the-market equity program by an additional $20 billion, bringing its total to $24.5 billion to support further ETH accumulation. This was confirmed through a Form 8-K and prospectus released on the same day.
Tom Lee, co-founder of Fundstrat and chairman at BitMine, is orchestrating one of the largest Ethereum accumulation initiatives on record. BitMine has already collected around 1.2 million ETH, valued near $5 billion, with ambitions to capture 5% of Ethereum’s overall supply.
Together, these moves signal Thiel’s strong conviction in Ethereum. His recent investments, the 9.1% stake in BitMine followed by the 7.5% in ETHZilla, showcase a robust confidence that Ethereum’s growth will surpass potential dilution and volatility, allowing for a lucrative accumulation strategy moving forward.
At the time of reporting, Ethereum was trading at $4,655.
