Silicon Valley venture capital firm Founders Fund, founded by billionaire Peter Thiel, is making a comeback in the cryptocurrency market. Sources indicate that the firm invested $200 million last year in crypto tokens, with half of the investment in bitcoin and the other half in ether. This move reflects a renewed interest from institutional investors in token investments.
This development is significant, as it comes after a tumultuous period for the crypto market in 2022, when the collapse of major players like FTX led to a regulatory crackdown and a crash in prices. The price of bitcoin plummeted to nearly $15,000, its lowest in two years. However, over the past year, both bitcoin and ether prices have been gradually climbing, with bitcoin recently hitting $50,000 for the first time in over two years.
Founders Fund has a history of involvement in crypto, having aggressively bought bitcoin in 2014 and then liquidated it before the market crash in 2022, earning substantial returns. Last summer, the firm began acquiring bitcoin at a price below $30,000 and continued to make purchases over several months. The average price of these purchases has not been disclosed.
Peter Thiel, known for his involvement in companies like PayPal and Palantir, has publicly praised bitcoin as a store of value and a hedge against central banks’ monetary policy. This affinity for cryptocurrencies aligns with Thiel’s interests in libertarianism, small government, and technology innovation.
Founders Fund, which boasts over $12 billion in assets under management, made early investments in companies like SpaceX and Meta. The firm hired Joey Krug as a partner in 2023 to focus on crypto investing. This move by Founders Fund signals the growing interest of Silicon Valley in cryptocurrency markets, and it will be interesting to see how this resurgence shapes the industry in the coming years.
(Note: The contents of this article are based on information from anonymous sources and have not been confirmed by Founders Fund or its representatives.)
