Enormous profit made by fund of man who rooted for further adoption of Bitcoin, while quietly selling it in background
Peter Thiel’s Founders Fund successfully sold $1 billion worth of cryptocurrencies with a significant profit, according to the Fortune article. The most interesting part of the story is Thiel’s speech at the Miami conference, when the venture capitalist explained how advantageous Bitcoin is while being out of the crypto market for good.
As the article suggests, by March 2022, the company has generated $1.8 billion for selling most of their cryptocurrency holdings. Most of the company’s investment consisted of Bitcoin. Technically, Thiel’s fund sold Bitcoin at one of the best prices available, as it would tank to $15,559 later that year.
However, during his speech at the conference, Thiel did not mention or hint at the fact that his fund has sold most of its holdings. On the contrary, the investor urged attendees to expose themselves to Bitcoin because of the value it brings to the table. Thiel also brought up the fact that BTC is in fact undervalued.
Initially, the San Francisco-based Founders Fund bought Bitcoin in 2014 when it traded under $1,000 and held it through two bull and bear markets. The fund then successfully sold its holdings at the local top and does not seem likely to return to the market in the foreseeable future.
Despite the most recent recovery of the market, almost all institutional investors that were present in the industry back in 2021 have now left the market and are sitting on the sidelines. Considering the lack of macroeconomic clarity, it is not year clear when we are going to see the recovery of the cryptocurrency market and the start of a new bull run.