According to the Financial Times, Peter Thiel’s fund made $1.8 billion from his bitcoin position.
Specifically, the hedge fund led by Peter Thiel sold its bitcoin holdings last year as the market crashed.
“The hedge fund sold the majority of its bitcoin holdings in March 2022. The sale of bitcoin helped the fund raise $1.8 billion,” according to a report from the Financial Times.
At the same time, Peter Thiel, known for founding PayPal and Palantir and also an investor in Facebook, spoke at the Bitcoin 2022 Conference in Miami. Famous investor spent much of his keynote to comparing the different purposes of Bitcoin and Ethereum.
In March of last year, bitcoin and crypto prices began to decline amid a turbulent macroeconomic environment. Bitcoin fell about 34% to around $45,000 in early March 2022, from an all-time high of around $69,000 in November 2021, according to data via TradingView.
The crypto market remained in the doldrums throughout the spring of 2022 when Russia invaded Ukraine. Simultaneously, US Federal Reserve raised rates for the first time since 2018. Interest rates rose 25 basis points to 50.0.5% to combat inflation — which is at a 40-year high.
When the fall of Terra’s ecosystem and the ensuing crisis in the crypto market occurred after Thiel’s fund closed its position, BTC price was quite far from the peak in March.
On the bitcoin sale, Thiel’s fund declined to comment.