Peter Thiel, known as the godfather of Silicon Valley venture capital, has recently made headlines for his successful investments in Bitcoin and Ethereum. Thiel, who co-founded PayPal with Elon Musk and was an early investor in Facebook, has proven once again his keen eye for lucrative opportunities.
Through his venture capital firm, Founders Fund, Thiel invested a staggering $200 million in cryptocurrencies last summer and fall, with half of the investment going into Bitcoin and the other half into Ethereum. This move turned out to be incredibly profitable, as the crypto market soared in value since the end of last year.
Rough calculations suggest that Founders Fund’s average purchase price for Bitcoin was around $26,000 and for Ethereum was around $1,800. This means that the fund has already made a profit of approximately $140 million based on current market prices.
Insiders reveal that Founders Fund started acquiring Bitcoin when its price was below $30,000 and continued to accumulate more over the following months. This demonstrates the renewed interest of Founders Fund in the crypto market. It is worth noting that Founders Fund was one of the earliest institutional investors in cryptocurrencies, having actively purchased stablecoins in 2014. The fund then sold all its holdings before the collapse of FTX in 2022, making a profit of around $1.8 billion.
With over $12 billion in assets under management, Founders Fund is renowned for its early investments in prominent companies such as SpaceX and Meta.
In addition to his venture capital endeavors, Peter Thiel, as a serial entrepreneur, also owns Palantir, a well-known data analytics company. Palantir provides data analysis services to government agencies, military, and businesses. The company experienced significant revenue growth last year due to the high demand for AI, leading to a threefold increase in its stock price from its lowest point of $7.19 to its current price of around $25.5.
Peter Thiel’s success in both the cryptocurrency and AI industries showcases his expertise and ability to spot lucrative opportunities in emerging markets.
