Author: Zen, PANews

BitMine, a publicly listed US-based mining company, has garnered widespread market attention for becoming the world's largest enterprise holder of Ethereum. The release of on-chain data has sparked renewed discussion about the role and influence of institutions in crypto asset allocation. Besides BitMine Chairman Tom Lee, who consistently garners media attention for his ETH support, another name has been frequently mentioned behind the scenes: Peter Thiel.

As one of Silicon Valley's most controversial and forward-thinking investors, Thiel expressed an early interest in Bitcoin and the potential of decentralization, and through his funds, he has made numerous bets on the crypto industry. Thiel's investment trajectory not only reflects his judgment on future technological trends but also, to a certain extent, shapes the current landscape of the crypto market.

PayPal Mafia Godfather

If we were to find a core figure for the story of the famous "PayPal Mafia", its "godfather" Peter Thiel would obviously be the most suitable.

In 1998, Thiel co-founded Fieldlink with Max Levchin, Luke Nosek, and others, later renaming it Confinity. Due to the lack of commercial success of its development of security software for handheld devices, the company quickly shifted its focus to digital wallets, launching the first version of the PayPal electronic payment system in 1999. In March 2000, Confinity merged with X.com, an online financial services company founded by Elon Musk and others, and officially changed its name to PayPal in June 2021.

In 2002, eBay announced the acquisition of the newly listed company in an all-stock transaction for approximately US$1.5 billion. As co-founder and first CEO, Peter Thiel completed the first significant wealth leap in his life.

After the sale of PayPal, members of the "PayPal Mafia" dispersed across Silicon Valley, sparking a new wave of entrepreneurship and investment. Among them, Thiel's $500,000 convertible bond investment in Facebook in 2004 is often considered one of Silicon Valley's most iconic early investments. At the time, Facebook was valued at just $4.9 million. As Facebook's first outside investor, Thiel acquired a 10.2% stake and joined the company's board of directors. After Facebook went public in 2012, Thiel cashed out over $1.1 billion.

Thiel actually began his venture capital career as early as 1996. Back then, he raised $1 million with the help of friends and family, investing $100,000 in his friend Luke Nosek's web calendar project, which ultimately failed. Subsequently, at the suggestion of Luke's friend Max Levchin, Thiel and his partner co-founded the cryptography-related company Fieldlink, which later evolved into PayPal.

After years of navigating Silicon Valley and successfully investing in Facebook, Thiel began to reshape his investment vehicles and philosophy. In 2005, he co-founded Founders Fund with longtime partners like Luke Nosek, initially focusing on defense-related startups and technologies. Palantir, the data company Thiel founded in 2003, also focused on counterterrorism and fraud as early applications, quickly growing into a key data infrastructure provider for the US government and major institutions. Palantir's stock price has also increased 20-fold in the past five years, earning it the title of a "national fortune stock."

Following Facebook's immense financial success, Founders Fund shifted its focus to hard technology, aiming to support startups with the potential to "elevate civilization to a new level." Besides Facebook, Thiel has made early investments in numerous leading companies in various fields, including Airbnb, LinkedIn, SpaceX, Stripe, and DeepMind, both personally and through Founders Fund.

It is worth mentioning that in 2002, Thiel also ran Clarium Capital, an investment management and hedge fund that implemented a global macro strategy. The assets under its management grew rapidly to US$8 billion in 2008, but a series of unprofitable investments and client redemptions caused its managed assets to shrink to about US$350 million in 2011.

From the founding and sale of PayPal, to his legendary early investment in Facebook, and finally to the formation of Founders Fund and Palantir, Thiel essentially completed his transformation from entrepreneur to angel investor to venture capital partner to industry opinion leader in the first decade of the 21st century. This journey has accrued considerable capital, connections, and the ability to consistently stay at the forefront of technology, quietly paving the way for his near-future entry into the world of crypto.

$1.8 billion in profits during the cryptocurrency cycle

Among all the Silicon Valley capitals, Thiel is one of the earliest well-known investors to have intersections with the cryptocurrency and blockchain industries.

In September 2014, Thiel announced the latest cohort of the Thiel Fellowship, a list of 20 young individuals shortlisted, including then-20-year-old Ethereum co-founder Vitalik Buterin. The fellowship is a two-year startup funding program launched in 2010 by Thiel through the Thiel Foundation. It's open to those 22 and under who don't have a college degree, encouraging them to drop out of school to pursue startups or research. In addition to cash funding, the program provides mentorship and network support, but does not take equity in the founders' companies. With the rapid growth of Ethereum, Vitalik quickly became a prominent figure in the Thiel Fellowship.

Before funding Vitalik, Thiel had already demonstrated his interest in and support for the early blockchain industry. In 2013, Founders Fund led a $2 million seed round for crypto payments company BitPay. At the time, crypto payments were still in their infancy, and the move was interpreted by some as a sign that a top Silicon Valley fund was beginning to explore crypto applications on the "payment side," betting on its regulatory compliance and merchant acceptance.

Thiel's other well-known investments in the cryptocurrency industry are Block.one, the parent company of the public blockchain project EOS, and Bullish, the crypto exchange launched by Block.one in 2021. In 2018, Block.one announced strategic investment from investors including Peter Thiel and Bitmain. In 2021, Block.one spearheaded the incubation of Bullish, an institutional crypto trading platform, with a reported investment of approximately $10 billion. Peter Thiel, Alan Howard, and Louis Bacon were listed as key early backers.

In 2019, mining infrastructure company Layer1 announced a $50 million funding round, with Peter Thiel as one of its investors. Layer1 aims to build comprehensive capabilities in the United States, from power and chips to self-built mining farms. This aligns with Thiel's consistent investment preference for infrastructure and upstream control.

In addition to supporting early-stage crypto projects as an investor, Thiel's returns from direct cryptocurrency investments may be even more impressive. According to Reuters, Founders Fund, one of the earliest institutional investors in the cryptocurrency market, began buying large amounts of Bitcoin as early as 2014 and liquidated them before the 2022 cryptocurrency market crash, earning a massive return of approximately $1.8 billion.

Furthermore, sources claim that Founders Fund resumed cryptocurrency purchases in the summer of 2023, investing $200 million in Bitcoin (BTC) and Ethereum (ETH) over a period of several months. Reuters was unable to obtain the average price of these purchases, but at the time, Bitcoin was trading below $30,000, while Ethereum was fluctuating between $1,500 and $1,900. Reuters commented, "This interest in cryptocurrencies aligns with the billionaire's interests in libertarianism, small government, and technological innovation."

Increase investment in cryptocurrency

In recent years, Thiel has repeatedly championed Bitcoin. Publicly, he has repeatedly praised Bitcoin's capabilities as "digital gold," calling it a hedge against inflation and central bank policies. In October 2021, at an event hosted by the Lincoln Network in Miami, Thiel was invited to speak on cryptocurrencies, central banks, and macroeconomic issues. He expressed his feeling underinvested in Bitcoin, stating, "All you have to do is buy Bitcoin."

Facts have proved that what Thiel said is true. In recent years, Thiel seems to have begun to increase his investment in cryptocurrencies, and his Founders Fund's investment strategy and focus have begun to shift to the crypto field.

In May 2023, former Pantera co-chief investment officer Joey Krug joined Founders Fund as a partner. Krug stated on the X platform, "I will focus on developing Founders Fund's crypto strategy for the next decade, while identifying the next wave of crypto startups and founders worthy of support." With Krug's arrival, Founders Fund began to shift toward treating crypto as a regular investment category.

Amid the surge in public company crypto treasuries, Thiel once again emerged as a "behind-the-scenes winner." In mid-2025, Bitcoin mining company Bitmine Immersion Technologies announced a shift in its treasury strategy toward Ethereum (ETH), appointed Fundstrat co-founder and renowned macro analyst Tom Lee as chairman, and launched a $250 million private placement. In mid-July, Thiel, one of the company's largest shareholders, disclosed a stake of approximately 9.1%. Following the announcement, the company's stock price rose nearly 15% in early trading.

According to data from StrategyEthreserve, Bitmine, a US-listed company, holds approximately 1.2 million Ethereum tokens, with a market value exceeding US$5 billion. It ranks first among Ethereum treasury companies, significantly ahead of second-ranked Sharplink Gaming, which holds approximately 728,800 Ethereum tokens, worth approximately US$3.25 billion.

Furthermore, Thiel's early investments made four years ago are beginning to pay off. In August 2025, Bullish was listed on the New York Stock Exchange and saw a sharp surge in its stock price on its first day of trading. This marked the official realization of Thiel's long-term bet on "institutional trading infrastructure" in the public capital markets.

Thiel's political influence as a power broker

Beyond his commercial success in fintech and cryptocurrency, Peter Thiel's influence has also reached the heart of power in Washington. As a "tech supercapitalist," Thiel's role in American politics is formidable. He has long cultivated influence in the White House and Congress by funding candidates and establishing connections between government and business.

As one of the few Republican supporters in Silicon Valley, he openly supported Trump during the 2016 presidential election. In a Silicon Valley environment where almost everyone opposed Trump, Thiel's high-profile support was unusual, but as a self-proclaimed libertarian and believer in capitalism, he also appreciated Trump's anti-establishment stance.

Thiel is also very active in political donations and networking. In 2016, as a key ally of Trump, Thiel donated $1.25 million to the Trump campaign and became a member of the presidential transition team.

Furthermore, the Los Angeles Times noted his long-standing investment in Republican candidates, particularly a new generation of conservative politicians with ties to the tech industry. For example, he donated a record-breaking $15 million to his protégé, former employee and current US Vice President JD Vance, the largest single donation ever made to an Ohio Senate race. He also introduced Vance to Trump, helping him secure his endorsement and indirectly securing a "perfect partner" for Trump's subsequent presidential campaign and second term.

Another Silicon Valley upstart, Blake Masters, formerly the COO of Thiel's foundation and co-author of his book "Zero to One," has also received funding and support from Thiel, and they are pursuing a political career together. Thiel has invested over $10 million in a super PAC supporting both candidates.

Several major US media outlets have described Thiel as a "power broker" or "financial backer" in the Republican tech world. Business Insider even called him the "King of the Republican Party," an early supporter of Trump who became the first Silicon Valley tech investor to cash in his donation in 2016.

It's worth noting that Thiel's attitude toward the Trump campaign has shifted. In a 2023 interview with The Atlantic, The Guardian reported that Thiel described his "decision to support Trump as a 'disjointed cry for help,' and that things were turning out to be far crazier and more dangerous than we'd imagined." The report also stated that Trump had been displeased with Thiel after being turned down earlier in 2023 when he called to solicit $10 million. Ultimately, Thiel did not participate in funding the 2024 political campaign.