Founders Fund, spearheaded by billionaire Peter Thiel, is doubling down on cryptocurrency investments, signaling renewed interest from Silicon Valley in digital asset markets.
In a significant move last year, the venture capital firm allocated $200 million to acquire crypto tokens, with half invested in bitcoin and the other half in ether, the two leading cryptocurrencies.
The investment represents a resurgence in institutional interest in token investments, following a downturn in the crypto market in 2022 triggered by the collapse of major players like FTX.
Despite the market turmoil, bitcoin and ether prices have gradually rebounded over the past year, with bitcoin recently surpassing $50,000 for the first time in over two years.
Founders Fund, known for its early adoption of crypto investments, initiated its foray into Bitcoin back in 2014. After liquidating its holdings before the 2022 crash, the firm resumed accumulating bitcoin and ether last summer when prices were below $30,000.
Although the average purchase prices remain undisclosed, the move underscores the firm’s confidence in the long-term viability of cryptocurrencies.
Peter Thiel, a vocal advocate for Bitcoin, views the digital currency as a store of value akin to gold and a hedge against central bank policies. His libertarian ideals and penchant for technological innovation align closely with the ethos of cryptocurrency.
With over $12 billion in assets under management, Founders Fund has reaffirmed its commitment to crypto investing, bolstered by the addition of Joey Krug as a partner specializing in cryptocurrency investments.
