Dollar billionaire Peter Thiel’s venture capital company, Founders Fund, strategically acquired $200 million in leading cryptocurrencies Bitcoin and Ethereum prior to their price increase. This move comes after the fund liquidated its entire crypto assets in early 2022 for a staggering $1.8 billion ahead of the market downturn. Thiel, a prominent advocate of Bitcoin, has previously voiced his belief that more investments should have been directed towards the cryptocurrency during its peak growth period.
Strategic Crypto Acquisitions Precede Market Surge
Sources reveal that Founders Fund commenced its Bitcoin purchases when the cryptocurrency was trading below $30,000. Over the following months, the fund expanded its investment to include Ethereum, the second-largest digital currency by market capitalization. These acquisitions were made in anticipation of a market upturn.
Thiel, a vocal supporter of Bitcoin, sees the cryptocurrency’s climb in value as a response to the monetary policies of central banks and the instability of traditional fiat currencies. His previous lament over the underinvestment in Bitcoin during high-profit periods underscores his confidence in its financial potential.
Prudent Exit from Crypto Before 2022’s Market Slump
The Financial Times reported that the Founders Fund strategically divested most of its cryptocurrency holdings in March 2022, right before the market hit a prolonged slump. The fund’s initial investment in Bitcoin during the 2017-2018 bull market was between $15 and $20 million. The recent market data shows Bitcoin making a 4.37% gain in the last 24 hours, trading above $50,000, while Ethereum has marked a 6.54% increase, trading at $2,648.
These investments and prior divestments illustrate the fund’s agile approach to navigating the volatile crypto market, capitalizing on trends, and safeguarding its holdings against potential downturns.