Is there another cryptocurrency craze in Silicon Valley? Founders Fund is rumored to invest $200 million

Author: Zhitong Finance

According to sources, Founders Fund, a venture capital firm founded by billionaire Peter Thiel, once again invested in Bitcoin and Ethereum, marking Silicon Valley’s interest in the cryptocurrency market. of renewed attention. Between late summer and early fall last year, the fund invested $200 million in crypto tokens, half of which was invested in Bitcoin and the other half in Ethereum, the two largest cryptocurrencies.

The above-mentioned sources added that Founders Fund began buying Bitcoin last summer when the price was below $30,000, and purchased more Bitcoin and Ethereum in the following months.

It is worth mentioning that this type of move has not been reported before by this well-known Silicon Valley venture capital firm, highlighting the trend of some institutional investors returning to token investment, which was once the crypto market in 2022. The hottest investing strategies before the crash. At the same time, this ultra-large bet also marks the return of the crypto market.

As one of the earliest institutional investors to invest in cryptocurrencies, Founders Fund has been buying Bitcoin aggressively since 2014, but cleared its positions before the crypto market collapsed in 2022, earning a return of approximately $1.8 billion. The fund hired Joey Krueger as a partner in April 2023 to focus on cryptocurrency investments.

In addition, Thiel, the co-founder of PayPal (PYPL.US) and Palantir (PLTR.US), has publicly praised Bitcoin, a currency based on blockchain technology that is independent of Outside of central banks, he said it is a store of value like gold and counters central bank monetary policy.

Notably, the billionaire’s preference for cryptocurrencies aligns with his interests in libertarianism, small government, and technological innovation. The fund was previously known for its early-stage investments in companies such as SpaceX and Meta (META) and currently has more than $12 billion in assets under management.

A spokesman for the fund declined to comment.