Peter Thiel’s Founders Fund Makes $200 Million Crypto Investment Before Bull Run

February 13-Founders Fund, the venture capital firm established by billionaire Peter Thiel, has rekindled its interest in the cryptocurrency market, making a substantial $200 million investment in bitcoin and ether, sources reveal. This move signals Silicon Valley’s renewed enthusiasm for digital assets and institutional investors returning to the crypto space.

From late summer to early fall last year, Founders Fund allocated $200 million to acquire crypto tokens, splitting the investment evenly between bitcoin and ether, the two largest cryptocurrencies, according to sources with direct knowledge of the matter.

The venture capital firm’s significant investment reflects a resurgence of interest in token investments, a strategy that was immensely popular before the crypto market crash in 2022. The move highlights the recovery of crypto markets, which faced challenges in the aftermath of the collapse of crypto exchange FTX and other major players, leading to a regulatory crackdown.

In 2022, bitcoin’s price plummeted to nearly $15,000, marking its lowest point since 2020. However, over the past year, both bitcoin and ether prices have been on a gradual ascent. Bitcoin recently surpassed $50,000 for the first time in more than two years, although it remains below its peak of $69,000 in November 2021.

Founders Fund has a history of involvement in the crypto space, having been one of the earliest institutional investors. The firm aggressively acquired bitcoin in 2014 but liquidated its holdings before the 2022 market crash, generating approximately $1.8 billion in returns.

Last summer, Founders Fund resumed acquiring bitcoin when its price was below $30,000, gradually accumulating more bitcoin and ether over the following months. The average purchase prices of these acquisitions remain undisclosed.

Peter Thiel, known for co-founding PayPal and Palantir, has publicly endorsed bitcoin, viewing it as a store of value similar to gold and a hedge against central banks’ monetary policies. Thiel’s affinity for cryptocurrency aligns with his broader interests in libertarianism, small government, and technological innovation.

Founders Fund, recognized for its early investments in companies like SpaceX and Meta, currently manages over $12 billion in assets. The addition of Joey Krug as a partner in April 2023 signifies the firm’s commitment to furthering its involvement in cryptocurrency investments.