Peter Thiel’s Founders Fund made a bet on bitcoin that’s now worth hundreds of millions of dollars

Peter Thiel’s Founders Fund made a bet on bitcoin that’s now worth hundreds of millions of dollars


Peter Thiel
Peter
Thiel.

Reuters

  • Founds Fund, the venture capital firm co-founded by
    tech billionaire Peter Thiel, has made hundreds of millions of
    dollars on bitcoin investments, according to the Wall Street
    Journal.
  • The firm reportedly put between $15 million and $20
    million into the cryptocurrency, and made a lot of money as
    bitcoin’s value skyrocketed 1,300% over the course of the
    year.
  • Bitcoin markets responded favorably to the Journal’s
    report, sending bitcoin up 12% on Tuesday.


Even Peter Thiel caught the bitcoin
bug.

Founders Fund, the venture capital firm co-founded by Thiel in
2005, invested $15 million to $20 million in the popular
cryptocurrency,
according to the Wall Street Journal

That bet on bitcoin is now worth hundreds of millions of dollars,
the fund told its investors, thanks to bitcoin’s dramatic rise in
the fourth quarter of 2017, according to the WSJ. The
cryptocurrency ended the year with a price around $14,000 — up
from around $1,000 at the start of 2017.

It’s unclear exactly when Founders Fund bought all its bitcoin.
Founders Fund declined to comment on the report.

Founders Fund’s bitcoin investments are spread across several of
the firm’s different funds, including one which launched as
recently as mid-2017, according to the WSJ. It’s unclear whether
any of the firm’s investments have been sold, according to the
report.

Despite growing hype and popularity, few mainstream institutions
have invested in bitcoin due to its speculative value and the
volatility of its pricing. Bitcoin prices can swing by
double-digit percentage points in a matter of hours.

In fact, the markets responded favorably on Tuesday following the
Journal’s initial report on the fund’s investment. 

The price of
bitcoin
was up 12% to $15,098.57 at
the time of publication Tuesday, up from an opening price of
$13,509.87, according to Markets Insider.

Get the latest Bitcoin price here.>>

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