Former Paypal Founder Sells Bitcoin Assets, Makes Investment Profits Of 1.8 Billion

Former Paypal founder and crypto investor Peter Thiel made a fortune from investing in Bitcoin assets. The Financial Times reported that Thiel earned a profit of around US$1.8 billion.

“Founders Fund, a venture capital firm founded by billionaire investor Peter Thiel, closed his crypto bets before the market crash last year,” the business and financial media wrote recently.

The cryptocurrency is one of the main holdings of Founders Fund Peter Thiel. According to the Financial Times, two-thirds of the fund’s cryptocurrency holdings consist of Bitcoin (BTC).

Founders Fund is said to have first bought BTC in 2014, when the asset was trading below US$1000.

The Thiel Company then increased its holdings over eight years. In March 2022, the company sold most of its cryptocurrency holdings, earning a tantalizing US$1.8 billion.

Speaking at the Bitcoin 2022 conference in Miami in April, Thiel continues to champion Bitcoin and call for increased adoption.

At Bitcoin Miami in 2022, an annual bitcoin conference, Thiel blasted Warren Buffett, saying he was at the top of the list of enemies of those trying to stop cryptocurrency.

Thiel also blasted JP Morgan’s chief executive, Jamie Dimon and BlackRock’s Larry Fink.

He even went on to say that the world is at the end of a fiat gaming regime. He also highlighted that Bitcoin is still undervalued but has the potential to replace gold.

Backing Bitcoin, Theil also said that he expects the price of the crypto to increase 100 times from its current trading value of US$44,000.

However, the billionaire venture capitalist did not disclose about the Founders Fund disbursing bitcoin asset investments in the previous month.

It should be noted that the fund’s decision to release its token was perfectly timed as Bitcoin would then undergo a massive decline, even briefly dropping below US$16,000 later that year.

“Currently, the fund does not have significant exposure to cryptocurrencies,” according to the FT source.

What Does Thiel Have To Do With The Bitcoin Crash In 2022?

2022 is one of the worst years in cryptocurrency history. The entire industry was rocked by a shock wave resulting in one of the worst sell-offs.

One of the major incidents was the wholesale sale of the institution. The Thiel Founder’s Fund sold its holdings just months before the tragic summer crash.

It’s possible Thiel’s firm saw the writing of the impending crash and took the necessary steps to stay ahead of the curve. However, other companies have not been so lucky.

After purchasing BTC in 2014, Founders Fund has enjoyed a very profitable journey.

Despite this, Thiel has been quoted as saying that his biggest regret is his late entry into Bitcoin.

In addition to investing directly in crypto asset exchange companies, in 2019, Thiel invested US$50 million in Bitcoin mining company Layer1 Technologies.

Unlike other Bitcoin mines, which tend to choose colder climates so that computer mining tools don’t overheat when mining, Layer1 instead chooses Texas in the US.

The reason is very simple and makes sense, namely the low electricity rates in this big city, because it uses wind power.

During the past 2022, Bitcoin (BTC) lost almost 60 percent of its value. Moreover, BTC has fallen 69.9 percent from its all-time high of $69,044.77, reached in November 2021.

Despite the recent market recovery, almost all the institutional investors that were present in the industry in 2021 have now left the market and are sitting on the sidelines.

Considering the lack of macroeconomic clarity, it is not yet clear which year we will see the recovery of the cryptocurrency market and the start of a new upsurge.

Quoting data from Coinmarketcap, Friday (20/1/2023) morning, the prices of Bitcoin and other top cryptos are observed to experience uniform movements.

The majority of the top cryptocurrencies are back in the green zone. Bitcoin (BTC) has regained 0.88 percent in the last 24 hours and 11.36 percent on the week. Currently, the price of bitcoin is at the level of US $ 21,000.

Ethereum (ETH) is also making a comeback. ETH is up 1.22 percent in the past day and 8.56 percent on the week. That way, ETH is currently at the level of IDR 23.49 million per coin.