Tim Draper Still Has $260 Million Worth of Bitcoin at $6,500 Price

[Crypto]

In a recent, exclusive interview with The Street, billionaire investor Tim Draper stated that he stands by his $250,000 Bitcoin price target by 2022.

While the price of Bitcoin has declined by more than 65 percent since late 2017, the holdings of early Bitcoin investors remain relatively high against the U.S. dollar. Draper, who invested in Bitcoin in 2014, still has more than $260 million worth of Bitcoin, excluding his investments in other cryptocurrencies including Tezos.

How Draper Built His Bitcoin Portfolio
In early 2014, the price of Bitcoin was volatile in the $1 to $5 range. Draper stated that he acquired Bitcoin in small batches, starting from approximately $2, and bought his first large batch of Bitcoin when the U.S. Marshall’s Office seized funds from Silk Road operators and put it in an auction. Draper said:

“Small amounts, a little bit at a time. That price was about $2.50 and then it was starting to really rip and the U.S. Marshall’s Office confiscated the Silk Road money from Bitcoin. They put it up for auction. The bidders were all sort of venture capitalists and a couple of other people. They were all talking about what kind of a deal they were going to get.”

At the time, in late 2014, 12 lots featuring thousands of Bitcoins were auctioned off and venture capitalists were allowed to participate in the auction. Predicting Bitcoin would either go down to zero or up to many billions of dollars, Draper outbid everyone with $632, with over 5 percent in premium, and purchased all 12 lots.

“Here was my thinking: Either this thing goes to nothing and–you know, too bad–or it goes sky-high and nobody’s going to care that I paid 5 percent more for it. So I bid up to $632 and I didn’t just get one lot, I got all the lots. I think it was about 40,000 Bitcoins.”

The 40,000 Bitcoins Draper purchased in 2014 are now worth $260 million. Subtracting the initial $22.4 million investment Draper made, even after a 65 percent correction, Draper’s profit from his 2014 investment is $237.6 million.

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