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Founders Fund, a venture capital (VC) firm founded by the billionaire Peter Thiel, is believed to have acquired bitcoin and ethereum worth $200 million sometime in the second half of 2023. The VC firm reportedly began purchasing bitcoin when its price was still under $30,000.
Founders Fund’s Renewed Interest in Crypto
In the latter half of 2023, Founders Fund, a venture capital (VC) firm established by German-American billionaire Peter Thiel, is thought to have invested $200 million in bitcoin (BTC) and ethereum (ETH). A Reuters report indicates that the $200 million was equally divided between the two leading cryptocurrencies.
The VC’s previously undisclosed investment, as detailed in the report, is seen as an indication of its revived interest in the digital asset markets. Prior to this investment, the Thiel-founded venture firm, along with many of its Silicon Valley counterparts, largely refrained from investing in cryptocurrencies.
During the period now commonly referred to as the crypto winter, the USD values of cryptocurrencies, including BTC and ETH, plummeted to levels not seen in nearly two years. Numerous crypto experts have attributed the crypto market’s difficulties in 2022 to the downfall of Do Kwon’s empire and the collapse of FTX, a cryptocurrency exchange co-founded by Sam Bankman-Fried.
Despite many investors losing billions of dollars in the market crash, Founders Fund, one of the first Silicon Valley VCs to gamble on crypto, managed to liquidate its digital assets and yield $1.8 billion in returns.
However, a year after the crypto market’s downward spiral compelled it to cash out, Founders Fund reportedly began purchasing BTC when its price was still under $30,000. This acquisition process is believed to have continued for several months.
At the time of writing, one BTC is trading at just over $48,812, suggesting that the VC firm’s latest crypto wager is already yielding positive returns.
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