Founders Fund, the venture capital firm founded by billionaire entrepreneur Peter Thiel, has reportedly re-entered the cryptocurrency markets, investing $200 million in bitcoin and ether tokens from late summer to early fall last year, according to sources familiar with the matter.
Institutional Investors Return to Crypto Investments:
The previously unreported investment highlights a resurgence in interest among institutional investors in token investments, marking a comeback for crypto markets following the downturn in 2022 triggered by the collapse of major players like FTX and subsequent regulatory scrutiny.
Founders Fund’s History with Crypto Investments:
As one of the earliest institutional investors in crypto, Founders Fund aggressively bought bitcoin in 2014, later liquidating its holdings before the 2022 market crash, which yielded significant returns.
Last summer, the firm began acquiring bitcoin again, purchasing more bitcoin and ether over several months.
Thiel, known for co-founding PayPal and Palantir, has publicly praised Bitcoin as a store of value akin to gold, aligning with his libertarian beliefs and interest in technology innovation.
Thiel’s endorsement of cryptocurrency underscores mainstream investors’ growing acceptance of digital assets.
Founders Fund’s Investment Strategy:
The investment in Bitcoin and ether reflects the Founders Fund’s confidence in the long-term potential of cryptocurrencies despite market fluctuations.
The firm, renowned for its early investments in companies like SpaceX and Meta, has over $12 billion in assets under management. It has bolstered its crypto focus by adding Joey Krug as a partner in April 2023.