Founders Fund Profited Nearly $2B Off $200M Crypto Investment Before Bull Run

The Peter Thiel-founded venture capital firm makes a significant return to the crypto market.
Founders Fund has reportedly invested $200M in BTC and ETH, a move previously undisclosed.
The move is aligned with Thiel’s stance in favor of cryptocurrencies.

Founders Fund, the renowned venture capital firm established by billionaire entrepreneur Peter Thiel, is making a significant return to the cryptocurrency market with a hefty investment in Bitcoin and Ether. According to a report based on insider information, the firm has allocated $200 million towards acquiring crypto tokens, split evenly between the two largest cryptocurrencies.

This move, previously undisclosed, highlights a resurgence of interest in cryptocurrency markets among institutional investors, reflecting a broader sentiment shift in Silicon Valley. The decision comes after a period of volatility and regulatory scrutiny that plagued the crypto industry in 2022.

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Founders Fund BTC and ETH Investment Signals Crypto Markets Recovery

The firm’s bold investment marks a notable comeback for the crypto markets, which faced substantial challenges following the collapse of major players like the crypto exchange FTX in 2022. This downturn led to a significant price depreciation across various cryptocurrencies, with Bitcoin plummeting to nearly $15,000, its lowest valuation since 2020.

Since then, however, both Bitcoin and Ether have experienced a gradual recovery. Bitcoin recently surpassed the $50,000 mark for the first time in over two years, although it remains below its peak of $69,000 in November 2021.

Founders Fund: A Notable History of Crypto Market Involvement

Founders Fund has a history of involvement in the crypto space, having been one of the earliest institutional investors in Bitcoin back in 2014. The firm realized substantial returns from its initial foray into crypto before liquidating its holdings ahead of the market crash in 2022, generating approximately $1.8 billion in profits.

Last summer, Founders Fund resumed its crypto acquisitions, initiating purchases of Bitcoin when prices were below $30,000. Over the following months, the firm steadily increased its exposure to both Bitcoin and Ether. Unfortunately, the average purchase price of these acquisitions remains undisclosed as Reuters was unable to obtain that information.

When questioned about the recent investment, a spokesperson for Founders Fund opted to withhold comment. However, Peter Thiel, known for his co-founding roles at PayPal and Palantir, has previously expressed his support for Bitcoin, lauding it as a store of value akin to gold and a hedge against traditional monetary policies.

Thiel’s enthusiasm for cryptocurrencies resonates with his broader ideological stance on libertarianism, limited government intervention, and the transformative potential of technology.

Founders Fund, recognized for its early backing of industry giants like SpaceX and Meta, now manages assets exceeding $12 billion. In a strategic move towards bolstering its crypto investment capabilities, the firm appointed Joey Krug as a partner in April 2023, tasked specifically with overseeing crypto-related ventures.

With Founders Fund reentering the fray, coupled with the broader resurgence of institutional interest in cryptocurrencies, the stage is set for a potentially transformative period in the crypto landscape, signaling renewed optimism among investors.

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The post Founders Fund Profited Nearly $2B Off $200M Crypto Investment Before Bull Run appeared first on Bitcoinsensus.

Publication date

02/19/2024 - 08:18

Author

JD Cruzate

Article source

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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.