Peter Thiel-led Founders Fund has been investing heavily in cryptocurrency since last year when the market was still in slump.
The fund, according to Reuters which cited some unknown sources, between August and October last year invested $200 million in crypto tokens, with half allocated to bitcoin and the other half to ether.
Bitcoin, which sank to $15,000 in 2022, has seen a rebound in the past few weeks. With its value now pegged at around $50,000, it is close to touching its highest ever price, just over $67,000, which it reached in 2021.
Founders Fund's investment in the bitcoin and ether indicates a renewed interest of Silicon Valley in the crypto market and also confidence to smaller investors.
The investment signifies resurgence for cryptocurrency markets, which experienced a downturn in 2022 following the collapse of major players like crypto exchange FTX. The ensuing price declines, industry tarnishing, and regulatory crackdown had cast a shadow over the sector.
Thiel, co-founder of PayPal and Palantir, has openly lauded Bitcoin. He views it as a store of value akin to gold and a safeguard against the influence of central banks' monetary policies. His support for cryptocurrency reflects his alignment with libertarianism and his enthusiasm for technological advancement.
Founders Fund, renowned for its early investments in companies like SpaceX and Meta, currently manages assets exceeding $12 billion.
In April 2023, it expanded its team by bringing on board Joey Krug as a partner, who previously served as a Co-CIO at Pantera Capital, specifically to lead their efforts in crypto investing.
Founders Fund, known for its early foray into cryptocurrency investments, began accumulating Bitcoin aggressively in 2014. However, it opted to liquidate its holdings before the crypto market crash of 2022, yielding returns of approximately $1.8 billion.
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