Exclusive: Billionaire investor Peter Thiel, known for his controversial views and early bets on tech giants like Facebook, quietly scooped up $200 million in Bitcoin and Ethereum last summer, according to Reuters sources. This pre-bull run investment positions Thiel’s Founders Fund to reap significant rewards as the crypto market surges, raising questions about Silicon Valley’s renewed interest in digital currencies.
Crypto Comeback Kid: After liquidating its Bitcoin holdings before the 2022 crash, Founders Fund seems to be betting on a crypto comeback. Their strategic $200 million investment, split evenly between Bitcoin and Ethereum, the two largest cryptocurrencies, was made between late summer and early fall of 2023, when Bitcoin was still below $30,000. This savvy move positions the fund to benefit from the recent bull run, with Bitcoin soaring nearly 124% and Ethereum up 75% in the past year.
Silicon Valley’s Signal: Thiel’s investment is seen as a significant signal of renewed interest in crypto from big players in Silicon Valley. This follows a period of skepticism and caution after the 2022 crash, raising questions about whether institutional investors are warming back up to the volatile asset class. While details of the purchase price remain unknown, the sheer size of the investment suggests confidence in the long-term potential of cryptocurrencies.
Not All Sunshine and Rainbows: Despite the positive outlook, concerns linger. The crypto market remains inherently volatile, and regulatory uncertainty continues to cast a shadow. Additionally, Thiel’s controversial past and his outspoken support for Bitcoin as a “digital gold” alternative to traditional currencies might fuel debate about the motivations and potential impact of such large investments.
One thing’s for sure: Thiel’s bold move puts Founders Fund at the forefront of the crypto conversation, raising the stakes for both the fund and the wider crypto market. Whether this marks a true comeback for digital currencies or another volatile ride remains to be seen. But one thing is clear: Thiel’s bet has put the spotlight back on crypto, and its future trajectory will be closely watched.