Founders Fund | Image: Founders Fund
Investing in new crypto assets: Founders Fund, the venture capital firm founded by billionaire Peter Thiel, is investing heavily in cryptocurrencies again, according to sources familiar with the matter. The Silicon Valley-based company reportedly invested $200 million in crypto tokens, split evenly between Bitcoin and Ether, the two largest cryptocurrencies.
The previously private move signals a resurgence of interest among institutional investors in token investing, a strategy that was once highly coveted ahead of the crypto market downturn in 2022. It’s highlighted. In 2022, major companies like crypto exchange FTX will collapse, leading to falling prices and increased regulatory scrutiny.
Bitcoin experienced a significant price decline in 2022, reaching near $15,000, its lowest since 2020. However, both Bitcoin and Ether have gradually increased in price over the past year. Bitcoin recently surpassed $50,000 for the first time in more than two years, but remains below its November 2021 high of $69,000.
Founders Fund has a history of involvement in cryptocurrencies, investing in Bitcoin in 2014. The company liquidated its holdings before the market crash in 2022, earning about $1.8 billion in profits. Last summer, Founders Fund resumed acquiring cryptocurrencies, starting with less than $30,000 in Bitcoin and gradually increasing its holdings over several months. The average purchase price for these acquisitions was not disclosed.
Peter Thiel, best known as the co-founder of PayPal and Palantir, has publicly supported Bitcoin, likening it to gold as a store of value and hedge against central bank policy. Thiel’s support for cryptocurrencies is consistent with his liberal views and interest in technological innovation.
Founders Fund is known for its early investments in companies such as SpaceX and Meta, and currently manages more than $12 billion in assets. The company appointed Joey Krug as a partner in April 2023, expanding its focus on cryptocurrency investments. A Founders Fund spokesperson declined to comment on recent investments.
(according to Reuters information)