Founders Fund Bets $200 Million on Bitcoin and Ethereum: Report
Billionaire Peter Thiel’s Founders Fund has invested $200 million in Bitcoin and Ethereum over recent months, according to sources cited by Reuters.
Key Details:
- The Founders Fund acquired $100 million each in Bitcoin and Ethereum.
- Purchases were made between late summer and early fall 2022.
- Founders Fund previously liquidated crypto holdings before the 2022 crash.
The investment, made between late summer and early fall last year, was split evenly between Bitcoin and Ethereum. It represents a comeback for Founders Fund into crypto investing after the firm liquidated its earlier Bitcoin holdings before prices collapsed in 2022. The firm also made around $1.8 billion in returns.
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Founder’s Fund started purchasing Bitcoin when it was below $30,000
The recent purchases occurred when Bitcoin was trading below $30,000. Bitcoin reached $50,000 this week for the first time in over two years.
However, BTC is far below its 2021 peak of around $69,000. Sources did not disclose the average purchase price paid by the Founders Fund.
In addition to its latest crypto purchase, Founders Fund hired former crypto hedge fund manager Joey Krug as a new partner focusing on digital asset investing.Â
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Bitcoin, Ethereum, and other cryptocurrencies endured a devastating 2022. This was following the collapse of crypto exchange FTX among several industry players, which triggered prices to crash. The fall of crypto giants also ramped up the scrutiny of the crypto market by regulators.
Bitcoin recently breached the $50,000 level and is trading at $49,917. Following suit, ETH is also up by almost 6%, with the price now hovering around $2,647. The global crypto market cap is also up by 3.56% and stands at $1.86 trillion at press time.
