San Francisco-based Venture Capital Firm Founders Fund Invests $200M in Crypto
Sources have revealed that Founders Fund, a venture capital firm led by Peter Thiel, allocated $200 million towards cryptocurrency investments from late summer to early fall of 2023. Half of this investment was directed towards Bitcoin, while the other half went into Ether. This move coincides with Bitcoin’s recent rebound, as its price surged past $50,000 for the first time in two years. Founders Fund began acquiring crypto assets last summer when Bitcoin was trading below $30,000. The firm continued to buy more Bitcoin and Ether over several months, although specific prices were not disclosed.
Founders Fund’s Early Adoption of Bitcoin
Peter Thiel and Founders Fund were among the earliest prominent investors to support Bitcoin. The venture capital firm entered the Bitcoin market in 2014 when prices were below $1,000 and steadily increased its investment over the following eight years. With over $12 billion in assets under management, Founders Fund has invested in numerous successful companies, including Facebook, Airbnb, SpaceX, and Lyft. It has also invested in blockchain infrastructure company Paxos and Ethereum scaling network Layer N.
Thiel’s Support for Bitcoin Maximalism
Peter Thiel is known for his advocacy of Bitcoin maximalism. He has described himself as a “pro-bitcoin maximalist” and has expressed skepticism towards other cryptocurrencies. Thiel believes that Bitcoin has the potential to become a reserve form of money and has compared it to gold. In addition to praising Bitcoin, he has criticized central banks for their monetary policies. Thiel sees the rising price of Bitcoin as a sign of hope and believes that it reflects the flaws of the current financial system.
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