Billionaire Peter Thiel Made $1.8 Billion From Crypto

Peter Thiel’s fund closed almost all of its crypto positions just before prices crashed last year. Founders Fund made $1.8 billion cashing out on its digital asset bet, the publication said. Thiel predicted that the price of bitcoin would rise 100-fold in the same period that his fund sells its cryptocurrency holdings.

The fund, known for investing in breakthrough technologies, has built a position in cryptocurrencies over time. It made its first bitcoin investment in 2014 and most of its cryptocurrency holdings were made up of the original cryptocurrency, the fund’s partners said in March last year.

Peter Thiel's venture capital firm made $1.8 billion from cryptocurrencies

Credits: Blockwork

Thiel gave a pro-bitcoin speech just a month after his fund reportedly sold most of its cryptocurrencies. He said the rise in the price of bitcoin was an implication that “central banks are bankrupt” and that it signaled “the end of the fiat regime.” He also spoke out against bitcoin critics, calling billionaire investor Warren Buffett “Enemy #1” and a “sociopathic grandfather of Omaha.”

Founders Fund, which has $11 billion in assets under management, sold a large chunk of its cryptocurrencies in late March 2022, a source told the FT. Bitcoin was trading around $41,976 at the time, down about 40% from its all-time high.

This timely trade was made before the crash of the algorithmic stablecoin TerraUSD (UST) in May, which marked the beginning of the cryptocurrency market carnage. A Founders Fund representative did not respond to Blockworks’ request for comment as of press time.

Dollar

Credits: Cryptonomist

Notably, Thiel gave a pro-bitcoin speech just a month after his fund reportedly sold most of its cryptocurrencies. He said the rise in the price of bitcoin was an implication that “central banks are bankrupt” and that it signaled “the end of the fiat regime.” He also spoke out against bitcoin critics, calling billionaire investor Warren Buffett “Enemy #1” and a “sociopathic grandfather of Omaha.”

Interestingly, Peter Thiel said in April 2022 that he is optimistic about the future of Bitcoin. The billionaire investor had suggested that BTC, which was worth around $44,000 at the time, could go 100-fold. These comments came just days after his fund sold its Bitcoin.

The sale of the Founders Fund’s cryptocurrency portfolio has not previously been reported. People familiar with the matter told the FT that the fund does not currently have significant exposure to cryptocurrencies. The fund currently has more than $11 billion under management and has invested in well-known companies such as SpaceX and Lyft.

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