Founders Fund, the venture capital firm co-founded by billionaire Peter Thiel, has reportedly made a substantial investment of $200 million in cryptocurrency tokens, split evenly between Bitcoin and Ether, sources familiar with the matter revealed to Reuters.
This move, previously undisclosed, signals a resurgence of interest from Silicon Valley in the cryptocurrency markets. The investment, made from late summer to early fall last year, underscores the return of institutional investors to token investments, a strategy that was once highly sought after before the crypto market crash of 2022.
The significant investment by Founders Fund marks a notable comeback for the crypto markets, which faced challenges in 2022 following the collapse of major players like crypto exchange FTX. The subsequent regulatory crackdown and market turmoil saw the price of Bitcoin plummet to nearly $15,000, its lowest level since 2020.
Despite the setbacks, Bitcoin and Ether prices have been steadily climbing over the past year, with Bitcoin recently surpassing $50,000 for the first time in over two years, albeit still below its peak of $69,000 in November 2021.
Founders Fund, known for its early investments in companies like SpaceX and Meta, has a history of involvement in the cryptocurrency space. The firm aggressively bought Bitcoin in 2014 but liquidated its holdings before the 2022 crash, yielding approximately $1.8 billion in returns.
According to sources, Founders Fund began acquiring Bitcoin last summer when prices were below $30,000 and continued accumulating Bitcoin and Ether over subsequent months. However, the average purchase price of these acquisitions remains undisclosed.
Peter Thiel, a co-founder of PayPal and Palantir, has publicly expressed his support for Bitcoin, citing it as a store of value akin to gold and a hedge against central banks’ monetary policies. Thiel’s libertarian leanings and interest in technology innovation align with his affinity for cryptocurrencies.
Founders Fund, with over $12 billion in assets under management, has been bolstering its crypto investing efforts. The firm hired Joey Krug as a partner in April 2023, focusing specifically on crypto investments, indicating a long-term commitment to the sector.
