Venture capital firm founded by billionaire Peter Thiel’s Founders Fund made a significant $200 million crypto investment, split evenly between bitcoin and ether, just before the recent surge in crypto markets. This bold move highlights Silicon Valley’s rekindled interest in cryptocurrency, marking a notable shift in institutional investment strategies.
The decision by Founders Fund to re-enter the crypto space underscores a broader trend of institutional investors returning to token investments, following a period of market turbulence in 2022. The collapse of major players like crypto exchange FTX and subsequent regulatory crackdowns had dampened market sentiment, causing prices to plummet.
Bitcoin and ether, the two largest cryptocurrencies, have since seen a gradual resurgence, with bitcoin recently surpassing the $50,000 mark for the first time in over two years. Despite this, prices remain below their peak levels seen in late 2021.
Founders Fund’s history with crypto investments dates back to 2014 when it began aggressively acquiring bitcoin. Although the firm liquidated its holdings before the 2022 market crash, it now seems poised to capitalize on the renewed momentum in the crypto space.
Notably, this latest investment comes amid growing public support for bitcoin from Peter Thiel, who views it as a store of value akin to gold and a hedge against traditional monetary policies. Thiel’s alignment with cryptocurrency reflects his broader interests in libertarianism, limited government, and technological innovation.
With assets under management exceeding $12 billion, Founders Fund continues to make strategic investments across various sectors, with a renewed focus on crypto following the appointment of Joey Krug as a partner in April 2023. This move positions the firm at the forefront of Silicon Valley’s evolving crypto landscape, signaling a bullish outlook on the future of digital assets.
