The Maverick of Silicon Valley Becomes a Major Investor in the Crypto Industry: Peter Thiel's Investment Journey

Few investors have left such a significant footprint in both the technology and cryptocurrency industries as Peter Thiel. From founding startups in Silicon Valley, making early investments in Facebook, to recent large-scale investments in cryptocurrencies, Thiel’s investment decisions have consistently anticipated the next wave of industry trends. Notably, Thiel’s capital and influence are behind the fact that Bitcoin Miners have become the world’s largest Ethereum holders.

From Co-founder of PayPal to Diversified Investor

Among early Silicon Valley entrepreneurs, Peter Thiel is one of the most experienced across multiple industries. In 1998, Thiel co-founded Fieldlink with Max Levchin and Luke Nosek. Initially aiming to develop security software for mobile devices, the company later pivoted to digital wallets, releasing the first version of PayPal in 1999.

Renamed Confinity, the company merged with Elon Musk’s X.com in 2000. When eBay acquired it for approximately $1.5 billion in 2002, Thiel, as co-founder and first CEO, achieved his first major success in Silicon Valley.

After selling PayPal, Thiel took a different path from other Silicon Valley members. In 2004, he invested $500,000 in Facebook via convertible bonds at a valuation of just $4.9 million, acquiring 10.2% of the company. This decision made him the first external investor in Facebook, which later returned over $1.1 billion.

This success profoundly influenced Thiel’s investment philosophy. In 2005, he co-founded Founders Fund with Luke Nosek. Initially supporting defense-related startups, the fund soon expanded into broader technology investments. The same year, Thiel’s own data company Palantir became a key infrastructure for the U.S. government, with its stock price increasing twentyfold over the past five years.

Following Facebook’s success, Founders Fund shifted its focus toward hard technology. It made early investments in startups like Airbnb, LinkedIn, SpaceX, Stripe, and DeepMind, which have become industry leaders.

The First Major Bet on Cryptocurrency: Meeting Vitalik

Peter Thiel’s full-scale entry into the blockchain industry began in 2013 and 2014. In 2013, Founders Fund led a $2 million seed round for the crypto payment company BitPay. At that time, crypto payments were still in their early stages, and major Silicon Valley funds betting on “payment-side” crypto adoption drew significant industry attention.

In September 2014, Thiel announced recipients of the Thiel Foundation’s “Thiel Fellowship,” a two-year startup support program. Among the fellows was Vitalik Buterin, then 20 years old, co-founder of Ethereum. The fellowship, which did not require university enrollment and encouraged entrepreneurship and research, became a symbol of Thiel’s ongoing relationship with the crypto industry.

Thiel’s crypto investments accelerated thereafter. In 2018, Thiel made strategic investments in Block.one, the parent company of EOS, alongside Bitmain. Block.one later incubated Bullish, a crypto exchange valued at around $10 billion in 2021. Thiel was among the early supporters, alongside Alan Howard and Louis Bacon.

In 2019, Thiel also participated in a $50 million funding round for Layer1, a mining infrastructure company. Layer1’s vision to build power, chip, and mining facilities within the U.S. aligned perfectly with Thiel’s long-standing investment philosophy of infrastructure dominance.

Pioneer Institutional Investor Gaining $1.8 Billion in Crypto Cycles

According to Reuters, Thiel’s Founders Fund, as an early institutional investor, began accumulating Bitcoin in large quantities from 2014. They liquidated all holdings before the 2022 crypto market crash, realizing a massive return of about $1.8 billion.

This successful investment decision reflects more than luck; it demonstrates Thiel’s philosophical conviction in digital assets. He has repeatedly publicly stated that Bitcoin is “digital gold” and a hedge against inflation and central bank policies.

In October 2021, at an event hosted by Lincoln Network in Miami, Thiel expressed a bullish stance on Bitcoin. He stated, “All you need to do is buy Bitcoin,” showing his confidence.

Interestingly, Thiel’s words were not just rhetoric. In summer 2023, Thiel’s Founders Fund resumed crypto purchases, investing $200 million in Bitcoin and Ethereum over a few months. At that time, Bitcoin was below $30,000, and ETH traded between $1,500 and $1,900. This timing again underscores Thiel’s foresight.

Major Shift in Crypto Investment Strategy: Steering Toward a New Era

Thiel’s stance on crypto investments has begun to change significantly in recent years. In May 2023, Joey Krug, former Co-CIO of Pantera Capital, joined Founders Fund as a partner. Krug announced on X that he would “develop Founders Fund’s crypto strategy for the next 10 years,” indicating that the fund is strengthening its position as a mainstream investment category for crypto.

A prime example is Thiel’s substantial participation in Bitmainmergence Technologies in 2025. Led by CEO Tom Lee, the company pivoted its “corporate treasury strategy” to Ethereum, raising $250 million in private placement. Thiel disclosed holding approximately 9.1% as the largest shareholder. Immediately after the announcement, the stock price surged nearly 15% in early trading.

According to data from Strategicethreserve, the Ethereum held by Bitcoin miners has reached about 1.2 million coins, with a market valuation exceeding $5 billion. It ranks first among listed companies’ Ethereum holdings, far ahead of second-place SharpLink Gaming (about 728,800 coins, worth approximately $3.25 billion).

Another notable event is the listing of Bullish in August 2025. The company, which debuted on the New York Stock Exchange, exemplifies Thiel’s long-term bet on an “institutional trading platform,” finally realized in the public capital markets.

Technological Innovation and Political Power: Thiel’s Dual Face

Thiel’s influence extends beyond investments and management. On the political stage, he is an influential figure. As a “super capitalist of the tech world,” Thiel is deeply embedded in Washington’s power centers.

A Silicon Valley supporter of the Republican Party, Thiel openly supported Donald Trump in the 2016 presidential election. His support was unusual amid widespread opposition from Silicon Valley elites, but Thiel maintained his stance as a “libertarian and capitalist,” paying close attention to Trump’s anti-establishment persona.

His financial involvement is also notable. In 2016, Thiel donated $1.25 million to Trump’s campaign and became a member of the presidential transition team. He has also continued long-term investments in new-generation conservative politicians aligned with tech industry interests.

He made a historic $15 million donation to Vice President Kamala Harris. Thiel brokered meetings between Harris and Trump, helping to facilitate the “Golden Duo” in subsequent elections.

Another protégé, Blake Masters, serves as COO of Thiel Foundation offices and co-authored Thiel’s book “Zero to One.” Thiel invested over $10 million in super PACs supporting his candidacy.

Major U.S. media outlets describe Thiel as a “power broker” and “funding source” in the Republican tech sphere. Business Insider calls him “the Republican kingmaker,” noting he was an early supporter of Trump and the first tech investor to donate from Silicon Valley in 2016.

However, there are notable shifts. In an interview with The Atlantic in 2023, Thiel hinted at a change in attitude toward Trump. He commented, “Supporting Trump’s decisions seems like an ‘inconsistent cry for help,’” suggesting the situation is more dangerous than it appears. Reports indicate that in early 2023, Trump requested a $10 million donation from Thiel, which was refused, and Thiel ultimately did not contribute to the 2024 political campaign.

What Thiel’s Investment Life Reveals

From Silicon Valley entrepreneur to global investor and Washington political influencer, Peter Thiel’s trajectory reflects not just a success story but a complex picture of modern society where technology, finance, and politics intertwine.

His shifting investment strategies in cryptocurrencies, from $1.8 billion in Bitcoin profits to current Ethereum infrastructure investments, continue to send important signals about where technological dominance may be headed in the next era.