Benzinga - In a recent development, Founders Fund, the venture capital firm established by billionaire Peter Thiel, has reportedly invested significantly in the cryptocurrency market.
What Happened: The Founders Fund invested $200 million in cryptocurrency tokens, with half the amount in Bitcoin (CRYPTO: BTC) and the other half in Ether (CRYPTO: ETH), the two largest cryptocurrencies, between late summer and early fall last year, Reuters reported. This move, which was not previously disclosed, highlights a renewed interest in token investments among institutional investors.
Despite the market crash in 2022, the Founders Fund has made a bold return to the crypto market. The fund’s investment signifies a resurgence for the crypto market, severely impacted by the collapse of major players and a subsequent regulatory crackdown.
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Bitcoin and Ether prices have been gradually recovering over the past year. Bitcoin recently reached $50,000 for the first time in over two years, although it is still below its peak of $69,000 in November 2021.
The Founders Fund, known for its early investments in companies like SpaceX and Meta, currently manages over $12 billion in assets. The firm hired Joey Krug as a partner in April 2023 to focus on crypto investing.
Why It Matters: This recent investment by the Founders Fund is particularly noteworthy, considering the firm’s previous actions in the crypto market. In January 2023, it was reported that the firm had cashed out its eight-year investment in Bitcoin just before the market crash, generating $1.8 billion in the process. The firm’s decision to re-enter the market with a substantial investment indicates a significant shift in its crypto strategy.
This news also comes at a time when the cryptocurrency market is experiencing significant fluctuations. Renowned economist Peter Schiff has expressed concerns over a potential pump-and-dump scenario in the market, while Michael Saylor, the CEO of MicroStrategy, has reiterated his bullish stance on Bitcoin’s future.
Read Next: Maxine Waters On Stablecoin Bill, Dogecoin Outshines Memecoin Rivals, Gamestop Coin Soars And More: Weekend Crypto Roundup
Photo by mark reinstein on Shutterstock
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