$200 Million in Crypto Investments: The move by Silicon Valley’s undisputed venture capital firms signals a return of corporate investors to speculative investment.
Founders Fund, venture capital firm it was founded by billionaire Peter Thiel, is reinvesting in bitcoin and ether, sources said, showing Silicon Valley’s new interest in the cryptocurrency market. From summer to fall last year, the fund invested $200 million to acquire crypto tokens, half in bitcoin and half in ether, the two largest cryptocurrencies, two sources with direct knowledge of the matter told Reuters .
The previously unreported move by a prominent Silicon Valley venture capital firm marks the return of some investors to private equity firms, once the most popular investment strategy. before the crypto market crashes in 2022. This fear bet indicates a return for the crypto market, which has suffered. in 2022 after the collapse of the crypto exchange FTX and other major players destroyed the price, polluted the industry and led to violations. By 2022, the price of bitcoin will fall to almost $15,000, the lowest price since 2020.
Peter Thiel’s Founders Made $200 Million in Crypto Investments
The price of Bitcoin and ether has been steadily rising over the past year, and Bitcoin hit $50,000 this week for the first time in more than two years, but is still below the November 2021 high of $69,000. as one of the first institutional investors in crypto , . The Fund’s founders started buying bitcoin in 2014, but withdrew before the crypto market crashed in 2022, earning about $1.8 billion in returns. Last summer, the Fund Foundation began to acquire bitcoin when the price was below $30,000, buying more bitcoin and ether than in many months, sources said. Reuters could not determine the average price of those purchases.
Thiel, who backs PayPal and Palantir, has publicly praised bitcoin, a currency based on blockchain technology that does not bypass central banks, saying it is a store of value like gold and a hedge against monetary policy. of the central bank. .the bank. The relationship for cryptocurrency dovetails with the billionaire’s interest in libertarianism, small government and technological innovation. The fund, known for its early bets on companies like SpaceX and Meta, currently has more than $12 billion under management.
