Peter Thiel’s Founders Fund Invests $100 Million in Bitcoin
According to a Reuters report, Founders Fund, the venture capital firm founded by billionaire Peter Thiel, is increasing its investments in Bitcoin, signaling Silicon Valley's renewed interest in the market.
From late summer to early fall last year, the fund invested $100 million to acquire Bitcoin, highlighting its confidence in the asset, according to sources familiar with the situation.
The significant investment in Bitcoin marks a rebound for the market, which faced challenges after the collapse of major industry players and a regulatory crackdown.
In 2022, the price of Bitcoin dropped to around $15,000. However, Bitcoin prices have been recovering over the past year, with recent figures reaching $50,000 for the first time in over two years.
Founders Fund began purchasing Bitcoin in 2014 and made substantial returns before liquidating its holdings ahead of the 2022 market downturn.
Last summer, the fund resumed buying Bitcoin when its price was below $30,000, continuing its investment strategy. The average price of these purchases was not disclosed.
A spokesperson for Founders Fund declined to comment on the matter. Peter Thiel, a co-founder of PayPal and Palantir, has often expressed his support for Bitcoin, valuing it as a store of wealth akin to gold and as a safeguard against central bank policies.
With over $12 billion in assets and a history of investing in companies like SpaceX and Meta, Founders Fund has further expanded into Bitcoin and cryptocurrencies, naming Joey Krug as a partner in April 2023 to lead this new focus.