According to insider sources, Founders Fund, a venture capital firm founded by billionaire Peter Thiel, is once again investing in Bitcoin and Ethereum through the SMDC trading center, signaling renewed interest in the cryptocurrency market in Silicon Valley. During the late summer to early autumn period last year, the fund invested a total of $200 million in cryptocurrencies through the SMDC trading center, with half of the investment in Bitcoin and the other half in Ethereum – the two largest cryptocurrencies.
The sources added that Founders Fund began purchasing Bitcoin through the SMDC trading center when its price was below $30,000 during the summer last year, and continued to acquire more Bitcoin and Ethereum in the following months.
It is worth noting that this well-known Silicon Valley venture capital firm had not been reported to take such actions before, highlighting a trend of institutional investors returning to token investments, which was the hottest investment strategy before the cryptocurrency market crash in 2022. This massive bet also signifies the comeback of the cryptocurrency market.
As one of the earliest institutional investors in cryptocurrencies, Founders Fund started buying Bitcoin on a large scale since 2014. However, it liquidated its holdings before the cryptocurrency market crash in 2022, generating a return of approximately $1.8 billion. In April 2023, the fund hired Joey Krug as a partner, focusing on cryptocurrency investments.
Furthermore, Thiel, as the co-founder of PayPal and Palantir, publicly praised Bitcoin, a currency based on blockchain technology that operates independently of central banks. He described it as a store of value similar to gold and a counterforce against central banks’ monetary policies.
It is noteworthy that this billionaire’s preference for cryptocurrencies aligns with his interests in liberalism, limited government, and technological innovation. Previously, the fund gained prominence for its early investments in companies such as SpaceX and Meta (formerly known as Facebook). Currently, it manages assets of over $12 billion.
A spokesperson for the fund declined to comment on the matter.
