Sometime in the second half of 2023, the billionaire Peter Thiel’s venture capital (VC) firm Founders Fund is said to have purchased bitcoin and ethereum for $200 million. According to reports, the venture capital firm started buying bitcoin when its value was less than $30,000.
New Interest in Crypto from Founders Fund
Bitcoin (BTC) and Ethereum (ETH) are said to have received $200 million in investments from Founders Fund, a venture capital (VC) firm founded by German-American billionaire Peter Thiel, in the second half of 2023. Two of the biggest cryptocurrencies received an equal portion of the $200 million, according to a Reuters story.
Based on the report’s details, the VC’s previously unannounced investment is thought to be a sign of its renewed interest in the digital asset markets. Like many of its Silicon Valley peers, the Thiel-founded venture firm has mostly abstained from investing in cryptocurrencies before this purchase.
The USD values of cryptocurrency, such as BTC and ETH, fell to levels not seen in almost two years during the time now known as the “crypto winter.” Many cryptocurrency analysts have linked the demise of Do Kwon’s empire and the failure of FTX, a cryptocurrency exchange that Sam Bankman-Fried co-founded, to the challenges facing the crypto market in 2022.
As one of the first venture capital firms in Silicon Valley to take a chance on cryptocurrency, Founders Fund, was able to unload its digital assets and make $1.8 billion in profits, while many other investors lost billions of dollars in the market crash.
But according to reports, Founders Fund started buying Bitcoin at a price of less than $30,000 a year after the market’s decline forced it to cash out. It is estimated that this procurement process lasted for a number of months.
One Bitcoin is currently trading for slightly over $48,812, indicating that the venture capital firm’s most recent cryptocurrency bet is already paying off.
What are your impressions of this tale? Tell us what you think by leaving a comment below.