An increasing number of businesses are selling their crypto assets, as seen by the sale of a Peter Thiel investing fund’s Bitcoin holdings last year.
In 2014, Founders Fund, a venture capital firm co-founded by billionaire Peter Thiel, made its first investment in Bitcoin. Despite buying various other cryptocurrencies, most of the firm’s crypto portfolio was composed of Bitcoin.
The fund publicly announced that it sold all of its cryptocurrency holdings eight years after placing its original wager. By the end of 2022, Founders Fund had liquidated the vast bulk of the bitcoin assets in its collection.
The fund achieved around $1.8 billion in return because it occurred before Terra instigated several crypto crises in May. The fund’s exposure to cryptocurrencies is currently minimal.
Increased Selloff In Part
Founders Fund sold $13B of its most significant investments, including Airbnb and Palantir, as part of a strategic move.
Founders Fund presently manages more than $11 billion, with the help of two funds that raised $5 billion last year. Over 100 businesses have received strategic investments from the corporation since its founding.
Last year saw a shift in crypto investments, with Founders Fund and Tesla selling significant holdings. This trend was likely due to falling prices and concerns over cybersecurity and money laundering.
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Many firms are avoiding direct crypto investments, instead focusing on equity stakes in crypto companies or underlying technology. Goldman Sachs recently announced plans to invest in crypto firms following FTX’s collapse.
Despite JPMorgan CEO Jamie Dimon having referred to Bitcoin as a scam, his corporation has invested in a blockchain-focused subsidiary.