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Peter Thiel's Strategic Moves: Early Crypto Investments Yielded High Returns

How early and smart crypto investments yielded high returns

In an astute financial maneuver, Peter Thiel's Founders Fund strategically allocated $200 million into Bitcoin (BTC) and Ether (ETH), evenly distributing the investment between these two leading digital assets. This investment, made before the cryptocurrency market's bull run, has demonstrated Thiel's deep understanding and confidence in the potential of digital currencies.

Notably, the timing of Thiel's investment played a crucial role in maximizing returns. Founders Fund initiated its purchase of BTC when its value was under $30,000, subsequently broadening its portfolio to include ETH in the following months. This decision was informed by Thiel's longstanding advocacy for Bitcoin, which he views as a critique of conventional central banking and fiat currency systems. His investment philosophy was vindicated as BTC and ETH saw remarkable gains of nearly 124% and 75%, respectively, over the last 12 months.

The culmination of this strategic investment came in March 2022, when Founders Fund sold the majority of its cryptocurrency holdings for an impressive $1.8 billion, just ahead of the onset of the crypto winter. This move not only underscored the fund's strategic market timing but also highlighted a significant profit realization from its initial investments, including a notable $15 to $20 million investment during the 2017-2018 bull market.