Founders Fund Unveils US$15-20 Million Investment in Bitcoin; Price Rises 13%

The venture firm dispersed its cryptocurrency purchases across multiple investment vehicles, notably including a newer fund that initiated its portfolio construction in mid-2017, allocating bitcoin as an first position. Whether the firm has disposed of any portion of its holdings remains ambiguous. Managing more than US$3 billion in assets, Founders Fund maintains equity stakes across over 100 enterprises spanning Facebook, Airbnb Inc., and SpaceX. Within the digital currency ecosystem specifically, the firm has backed Metastable Capital and Polychain Capital—both cryptocurrency-focused investment vehicles—alongside BitPay, which facilitates bitcoin transactions, and BitGo, a custodial security solution.

A widening chasm between blockchain company valuations and the underlying bitcoin asset has generated friction within venture partnerships. Numerous investment professionals contend that acquiring bitcoin directly would have delivered superior outcomes relative to funding early-stage companies in the sector. Startup investments typically remain inaccessible for seven to ten years before yielding returns, with approximately nine of ten ventures ultimately failing. Bitcoin, by contrast, exploded roughly 1,400% throughout 2017, starting near US$1,000 per unit and climbing to approximately US$20,000 in mid-December before declining 40% to US$12,000 in the final weeks of the year.

Beyond Founders Fund, other venture leaders have staked significant capital in bitcoin. Tim Draper accumulated nearly 30,000 bitcoins through a 2014 US Marshals Service auction, and he confirmed to CNBC in December 2017 he maintains his entire position, presently valued around US$450 million at the current US$15,000 rate. Cameron and Tyler Winklevoss crossed into nine-figure bitcoin wealth during 2017 as prices surpassed US$11,500, having initially deployed US$11 million in April 2013 when the cryptocurrency traded at US$120 per coin. Chamath Palihapitiya, previously employed at Facebook, held approximately US$5 million in digital assets as of October 2013—an investment now worth roughly US$375 million.