$200M Bet on Bitcoin & Ether: Founders Fund’s Move

Key Points

• Founders Fund invested $200 million in Bitcoin and Ether, marking a significant bet on cryptocurrencies.
• Despite the 2022 market crash, Bitcoin recently surged to $50,000, showcasing a market rebound.
• The fund’s strategic crypto purchases in 2014 and again in 2022 have yielded substantial returns.
• Joey Krug’s addition to the team in 2023 emphasises a deepened focus on crypto investments.

In a bold move that signals Silicon Valley’s reinforced confidence in digital currencies, the Founders Fund, known for its visionary investments, allocated $200 million to cryptocurrencies last year. This hefty investment was distributed equally between Bitcoin and Ethereum’s Ether, highlighting the firm’s balanced approach towards these leading cryptocurrencies. This decision came at a time when the crypto market was still reeling from a significant downturn in 2022, with Bitcoin plummeting to its lowest since 2020, nearly touching $15,000.

Bitcoin’s Climb to $50K: Signaling a Robust Market Recovery

The cryptocurrency market has been on a roller coaster, experiencing dramatic fluctuations. After the crash in 2022 that saw a steep price decline, the market has shown signs of resilience and recovery. Bitcoin, the flagbearer of cryptocurrencies, has made a remarkable comeback, reaching $50,000 for the first time in over two years. Though still shy of its all-time high of $69,000 in November 2021, this rebound is a testament to the market’s enduring appeal and the increasing investor confidence in the potential of digital currencies.

Early Bets to $1.8B Returns: Tracing Founders Fund’s Crypto Wins

Founders Fund has been an active participant in the cryptocurrency space for almost a decade. The firm began its foray into crypto in 2014 with aggressive purchases of Bitcoin, well before many of its peers recognised the potential of digital currencies. These early investments paid off handsomely, with the fund liquidating positions before the 2022 crash, netting approximately $1.8 billion in returns. Not resting on its laurels, Founders Fund once again demonstrated its bullish stance on cryptocurrencies by resuming Bitcoin purchases last summer when prices were below $30,000, alongside Ether, in anticipation of market recovery.

Joey Krug Joins Amplifying Crypto Focus with $12B AUM

In April 2023, highlighting its crypto investing focus, Founders Fund embraced Joey Krug as a partner, signalling strategic enhancement. With his extensive background in crypto, Krug is set to steer the firm’s investments in this domain. Krug, who brings insights into the crypto market, is set to bolster the fund’s capabilities, managing over $12 billion in assets under management (AUM).

Founders Fund’s recent activities and hires reflect a deep-seated belief in the transformative potential of cryptocurrencies. Using proactive tactics, the fund’s strategic investments in Bitcoin and Ethereum could lead to significant gains and inspire other investors.