San Francisco – In a strategic move, Founders Fund, the venture capital firm co-founded by Peter Thiel, has made a significant re-entry into the cryptocurrency market with a $200 million investment, split evenly between Bitcoin (BTC) and Ethereum (ETH).

Strategic Crypto Purchases Amidst Market Fluctuations

During the summer dip of 2023, with Bitcoin trading below the pivotal $30,000 threshold, sources close to Reuters revealed that Founders Fund began accumulating positions in BTC and ETH. The precise volume of the crypto assets purchased has not been disclosed, yet this marks a noteworthy comeback after the firm liquidated its crypto holdings in 2022 when Bitcoin tumbled below $20,000.

Expanding Expertise in Crypto Management

Founders Fund’s renewed interest in cryptocurrencies coincides with their bolstered crypto management team. Last year, the firm welcomed new talent with Joey Krug, formerly of Pantera Capital, and Jennifer Campbell from Tagomi, now part of Coinbase, both joining the firm’s ranks, signaling a reinforced commitment to the crypto sector.

Support Beyond Direct Investment

The firm’s $200 million crypto investment extends beyond simple asset acquisition. Founders Fund has shown its commitment to nurturing the broader crypto ecosystem through participation in funding rounds for innovative crypto startups. A recent example includes their contribution to the $13.5 million Series A for Dynamic Labs, a Web3 authentication service, alongside heavyweight investors like Andreessen Horowitz and Alchemy’s founders.

A History of Pioneering Investments

Since its inception in 2005 by industry stalwarts including Peter Thiel, Founders Fund has a track record of investing in transformative companies. With a portfolio boasting influential names such as SpaceX, Airbnb, Palantir Technologies, and Stripe, the firm has consistently been at the forefront of cutting-edge technology and innovation.

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