Founders Fund, the venture capital firm co-founded by billionaire Peter Thiel, has re-entered the cryptocurrency market with a significant investment in bitcoin and ether, according to a Reuters report. The firm allocated $200 million to acquire crypto tokens, evenly split between bitcoin and ether, during the late summer and early fall of last year.
This move, which was previously unreported, highlights a resurgence of interest among institutional investors in cryptocurrency markets. The investment signals a shift in sentiment following the crypto market crash of 2022, which was precipitated by events such as the collapse of the FTX exchange and subsequent regulatory actions.
During the crash, the price of bitcoin plummeted to nearly $15,000, its lowest level since 2020. However, both bitcoin and ether have seen gradual price recoveries over the past year, with bitcoin recently surpassing $50,000 for the first time in over two years, although still 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 in bitcoin back in 2014. The firm aggressively bought bitcoin at that time but liquidated its holdings before the 2022 crash, resulting in significant returns of about $1.8 billion.
In its recent foray into crypto, Founders Fund began accumulating bitcoin when the price was below $30,000 and continued purchasing both bitcoin and ether over several months. However, the average price of these acquisitions was not disclosed.
Peter Thiel, known for his roles in co-founding PayPal and Palantir, has been a vocal supporter of bitcoin. He views it as a store of value comparable to gold and a hedge against the monetary policies of central banks. Thiel's libertarian views and interest in technology innovation align well with the ideology behind cryptocurrency.
Founded in 2005, Founders Fund has established itself as a prominent venture capital firm with investments in companies such as SpaceX and Meta. With over $12 billion in assets under management, the firm continues to explore opportunities in emerging sectors, including cryptocurrency.