Key Takeaways
- • Founders Fund cashed out approximately $1.8 billion in cryptocurrency holdings by March 2022, exiting nearly all positions after an eight-year investment period that began in 2014 when bitcoin traded around $750.
- • Timing advantage: the fund's exit preceded major market deterioration by several months, as bitcoin subsequently declined over 60% through 2022 and fell below $17,000 by year-end, following the collapse of major crypto firms including FTX, Celsius Network, and Three Arrows Capital.
- • Peter Thiel continued publicly advocating for bitcoin in April 2022—one month after Founders Fund's liquidation—predicting a 100-fold price increase from the $44,000 level, a forecast that proved inaccurate as market conditions worsened.
- • At peak exposure, Founders Fund held approximately two-thirds of its portfolio in cryptocurrency, demonstrating significant sector concentration before the strategic exit that generated the $1.8 billion return.
- • The investment thesis spanned a 54-month bull market cycle, capturing bitcoin's surge from $750 (2014) to its November 2021 all-time high, representing an 8,500% appreciation before the fund's March 2022 liquidation.
Summary
Founders Fund, the venture capital firm co-founded by billionaire Peter Thiel, reportedly generated $1.8 billion by liquidating its cryptocurrency portfolio in March 2022, according to a Financial Times report citing sources familiar with the transaction. The exit proved strategically advantageous, occurring months before sustained market deterioration that saw bitcoin decline over 60% during 2022 and major crypto platforms including FTX, Celsius Network, and Three Arrows Capital experience high-profile failures.
The fund's cryptocurrency commitment spanned eight years, with initial investments made in 2014 when bitcoin was valued at approximately $750 per token. The portfolio appreciated substantially through the 2017-2021 bull cycle, reaching maximum exposure when crypto positions represented roughly two-thirds of Founders Fund's total holdings. At its November 2021 peak, bitcoin had appreciated 8,500% from the fund's initial entry point, representing significant capital accumulation before the March 2022 liquidation.
Notably, Peter Thiel maintained public endorsement of bitcoin after the fund's exit. Speaking at a Miami crypto conference in April 2022—one month following Founders Fund's portfolio liquidation—Thiel predicted bitcoin could appreciate 100-fold from its then-current $44,000 level, arguing "we're at the end of the fiat money regime." This forecast proved inaccurate as bitcoin subsequently declined to under $17,000 by December 2022 amid rising interest rates and sector-wide instability. Founders Fund retained no significant cryptocurrency exposure following the March 2022 exit, according to the Financial Times sources.
Thiel's venture capital track record extends beyond cryptocurrency, with early-stage investments in Facebook, SpaceX, and Lyft, along with PayPal co-founding credentials. The investor maintains prominent Republican party affiliation and has continued supporting Donald Trump following the former president's departure from office. Founders Fund declined to comment on the cryptocurrency liquidation.
The fund's cryptocurrency commitment spanned eight years, with initial investments made in 2014 when bitcoin was valued at approximately $750 per token. The portfolio appreciated substantially through the 2017-2021 bull cycle, reaching maximum exposure when crypto positions represented roughly two-thirds of Founders Fund's total holdings. At its November 2021 peak, bitcoin had appreciated 8,500% from the fund's initial entry point, representing significant capital accumulation before the March 2022 liquidation.
Notably, Peter Thiel maintained public endorsement of bitcoin after the fund's exit. Speaking at a Miami crypto conference in April 2022—one month following Founders Fund's portfolio liquidation—Thiel predicted bitcoin could appreciate 100-fold from its then-current $44,000 level, arguing "we're at the end of the fiat money regime." This forecast proved inaccurate as bitcoin subsequently declined to under $17,000 by December 2022 amid rising interest rates and sector-wide instability. Founders Fund retained no significant cryptocurrency exposure following the March 2022 exit, according to the Financial Times sources.
Thiel's venture capital track record extends beyond cryptocurrency, with early-stage investments in Facebook, SpaceX, and Lyft, along with PayPal co-founding credentials. The investor maintains prominent Republican party affiliation and has continued supporting Donald Trump following the former president's departure from office. Founders Fund declined to comment on the cryptocurrency liquidation.
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