Invested 265.7 Billion KRW in Bitcoin and Ethereum Last Year
"Silicon Valley's Interest in Cryptocurrency Returns"
Founders Fund, a venture capital firm founded by Silicon Valley 'big shot' Peter Thiel, is reportedly investing again in Bitcoin and Ethereum, according to major foreign media on the 12th (local time).
According to reports citing multiple sources, Founders Fund invested a total of $200 million (approximately 265.7 billion KRW), with $100 million each in Bitcoin and Ethereum, from late summer to early autumn last year.
Foreign media explained that Founders Fund's large-scale investment is an example of Silicon Valley's renewed interest in the cryptocurrency market. Cryptocurrencies were one of the popular investment strategies before the market collapsed in 2022. Recently, institutional investors are returning.
Founders Fund was one of the early institutional investors in the cryptocurrency market and began aggressively purchasing Bitcoin from 2014. It is known to have sold Bitcoin before the cryptocurrency market collapse in 2022, earning about $1.8 billion (approximately 2.3911 trillion KRW) in profits.
Bitcoin plummeted in 2022 due to the Terra-Luna cryptocurrency incident and the bankruptcy of FTX, then the largest cryptocurrency exchange in the U.S. At that time, it fell to $15,000 (approximately 19.92 million KRW), the lowest since 2020. Since then, it has gradually risen over the past year, and on this day, the Bitcoin price reached $50,000 (approximately 66.42 million KRW) for the first time in 26 months. This is analyzed to be due to continued buying momentum following the approval of spot exchange-traded funds (ETFs) last month. However, it has not yet reached the all-time high price of $69,000 (approximately 91.65 million KRW) recorded in November 2021.
According to sources, Founders Fund began buying Bitcoin last summer when the price was below $30,000 (approximately 39.85 million KRW). It purchased Bitcoin and Ethereum over several months. The average purchase price is unknown.
Thiel is a billionaire investor who co-founded fintech company PayPal and software company Palantir. In the past, he claimed that fiat currency is nearing its end and that cryptocurrencies will replace fiat currency. He also predicted that Bitcoin would become a store of value like gold.
Through Founders Fund, Thiel has invested in over 150 IT companies including SpaceX and Meta, currently managing assets exceeding $12 billion (approximately 15.9396 trillion KRW). To focus on cryptocurrency investments, he appointed Joey Krug as a partner in April last year.
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