According to a Reuters reportFounders Fund, the venture capital firm founded by billionaire Peter Thielis again betting big on the flagship cryptocurrency, Bitcoin. The VC firm reportedly made significant profits on their latest Bitcoin investment and is said to be hoping that this next market cycle will also bring huge rewards.
Founders Fund has already invested $200 million in Bitcoin and Ether
From late summer to early fall last year, Peter Thiel’s Founders Fund reportedly invested $200 million in the two largest crypto tokens by market cap: Bitcoin and Ethereum. If so, the VC firm is likely already sitting on unrealized gains as these two cryptocurrencies traded lower during that period.
Notably, the BTC price was known to be trading below $30,000 towards the end of summer last year. only rose above that level sometime in October. While the average prices of the Founders Fund’s Bitcoin purchases could not be determined, BTC was trading in the meantime the highest level since 2021.
Interestingly, the Founders Fund would have made approximately $1.8 billion in returns on their previous investment in Bitcoin. The Financial Times reported how the VC firm started investing in the crypto token as early as 2014 and liquidated most of its BTC holdings in March 2022, just before the crypto winter started at full speed.
Peter Thiel’s optimism about BTC
Peter Thiel, the co-founder of PayPal and one of the early investors in Facebook, is known as a long-time supporter of Bitcoin. He once explained how the flagship crypto token could provide a safe haven for investors, describing it as a “hedge” against the “world falling apart.” Thiel also belonged to the school that believed that Bitcoin could eventually replace gold.
When Bitcoin hit its all-time high at the height of the 2021 bull run, Thiel also admitted that he had invested too little in the crypto token. He said he should have bought more BTC instead of hesitating because he thought “everyone already knew the secret.”
The billionaire has also at one point described himself as a “pro-crypto, pro-Bitcoin maximalist.” His affinity for Bitcoin and cryptocurrencies generally also stems from his political philosophy of libertarianism, as he sees these virtual currencies as a “force for decentralization.”
Cover image of Dall-E, chart from Tradingview
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