Peter Thiel’s Founders Fund has made a substantial new crypto investment amid the market’s recovery. Founders Fund allocated $200 million toward cryptocurrencies from late summer through early fall 2023, according to sources reported on Monday.
Roughly half went to Bitcoin purchases, while the remainder was invested in Ethereum’s ether token, which resulted in profit as Bitcoin powered back above $50,000 last week for the first time in over two years.
Founders Fund began accumulating more bitcoin and ether in the summer of 2022, when prices were below $30,000. Specific entry points were not disclosed, but the firm steadily added to its holdings over subsequent months amid growing momentum.
The move reflects Founders Fund’s long-running embrace of Bitcoin and blockchain innovation under prominent technology investor Peter Thiel. Thiel was among the earliest vocal Bitcoin backers, with Founders Fund making an initial bet when prices traded below $1,000 in 2014.
The Founders Fund now oversees over $12 billion in assets from its early investments in companies like Facebook, Airbnb, SpaceX, and many more. Thiel said in 2021 that he felt “underinvested” in Bitcoin and looked forward to its continued rise.
Amidst Bitcoin skeptics’ concerns, the cryptocurrency faced instability throughout 2022, but this year’s resurgent performance reigns in more positive outlooks. The Founders Fund’s recent big bet indicates strong ongoing conviction.