Founders Fund Reduces Stake in Bitmine by 50%, Now Holds 2.5M Shares

In Brief

• Founders Fund sells half its stake in Bitmine, reducing holdings to 2.5M shares.
• The sale drops Founders Fund’s ownership below the 5% reporting threshold.
• SEC filing shows a strategic portfolio shift, not a full exit from the sector.

Founders Fund, the venture capital firm co-founded by Peter Thiel, has sold half of its stake in Bitmine. The firm now owns 2,547,001 shares, down from 5,094,000, as disclosed in a recent SEC filing. 

This reduction signals a strategic portfolio rebalancing rather than a full exit from the cryptocurrency sector. The sale has raised questions regarding the timing and reasons behind the decision, amid growing market volatility.

Strategic Shift in Portfolio Amid Market Conditions

The decision to trim its stake in Bitmine reflects a common practice among venture investors adjusting to changing market dynamics. Founders Fund’s new holding now amounts to 0.9% of Bitmine, significantly lower than its previous 9.1% stake. 

This drop brings the firm’s holding under the 5% threshold, meaning it is no longer subject to strict regulatory reporting rules. As a passive investor, Founders Fund will now enjoy more flexibility in its disclosure obligations.

The filing was made using Schedule 13G, indicating that Founders Fund does not intend to take control or actively participate in the governance of Bitmine. This filing is typically used by investors who are not seeking to influence a company’s management. 

Additionally, the timing of the SEC filing was delayed but remains within the legal guidelines. Passive investors have up to 45 days after a calendar quarter ends to submit a revised 13G, which is exactly what Founders Fund did.

The sale comes at a time when institutional investors are reassessing their positions in the volatile cryptocurrency market. While Founders Fund has reduced its exposure to Bitmine, the firm still maintains a stake in the company, signaling a belief in Bitmine’s long-term prospects.

This move follows a broader trend in the market, where firms are adjusting their portfolios in response to regulatory uncertainty and fluctuating market conditions. Founders Fund’s decision highlights a cautious approach, as it continues to monitor the evolving landscape of the cryptocurrency sector.