Bitcoin HODLers
The Winklevoss twins have a combined fortune of $US6.4 billion, according to the Bloomberg Billionaires Index. They co-founded Gemini and are thought to be among the largest holders of Bitcoin, reportedly buying about 1 per cent of all in existence around 2012.
The brothers first became famous for claiming Mark Zuckerberg stole their idea for a Facebook-type social media platform while at Harvard University. They settled a lawsuit and used the money — $US20 million plus Facebook stock — to create Winklevoss Capital in 2012.
“Many blockchain-based projects require additional funding to achieve their growth goals. This downdraft could tighten investors’ focus on who should get funding and who shouldn’t.”
Matthew Sigel, head of digital-assets research at VanEck
Many investment firms for ultra-wealthy families are shrouded in secrecy, taking pains to avoid the limelight and raising the specter of theft and kidnapping if their fortunes were made public.
The Winklevoss twins, by contrast, use Instagram and Twitter to promote their family office’s 75-plus investments. The companies that have been acquired are emblazoned with bright magenta badges on their website, which doesn’t include the size, duration and type of their stakes.
Their investments include Tezos, a platform for smart contracts and decentralized applications, and Xapo Bank, which protects users’ crypto holdings with the “security of a deep cold storage vault,” according to the family office. The twins joined Tiger Global Management and other investors last month in a funding round for GamerGains Lab, which lets players earn crypto rewards.
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The twins in January joined Soros Fund Management and other investors in a funding round for Animoca Brands ., a non-fungible token and metaverse company.
‘Interesting blend’
“It’s an interesting blend between what we think of as a traditional office and a venture capital firm,” said John Workman, managing director at family office advisory firm Pathstone. “You don’t find too many family offices with a web page that publishes what they’re investing in.”
The firm’s top exits have mostly come from non-crypto companies: Block Inc. bought food-delivery firm Caviar in 2014, Ford Motor Co. snapped up commuter ride-sharing firm Chariot in 2016, and ASSA Abloy purchased smart-lock maker August Home in 2017.
The twins remain big Bitcoin believers.Credit:Bloomberg
As for Winklevoss Capital’s newer crypto investments, some questioned how long such startups could continue to attract funding — even before this month’s turmoil.
“Compared to just a year ago, there’s been financing events that we’re just shocked at by the amount they were able to raise,” Spencer Bogart, a general partner at Blockchain Capital LLC, told Bloomberg News last month.
The New York-based firm, which has completed about 130 deals, passed on one it originally liked after the startup’s asking price reached levels too lofty to stomach.
“Many blockchain-based projects require additional funding to achieve their growth goals,” said Matthew Sigel, head of digital-assets research at VanEck. “This downdraft could tighten investors’ focus on who should get funding and who shouldn’t.”
If the Winklevoss twins approach their startup investments like they do Bitcoin, they’re likely in it for the long haul. When their digital coin of choice tumbled as low as $US25,425 on May 12, Tyler tweeted that he was “completely unfazed,” while Cameron said he’s “HODLing.” (HODL is an acronym for “hold on for dear life.“)
“Bitcoin isn’t just an asset. And it’s not just a technology,” Cameron Winklevoss tweeted on May 14. “It’s a movement that offers the blueprint to dismantle traditional power structures. It promises greater independence, choice and opportunity. It was a tough week, but the underlying fundamentals haven’t changed.”
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He signed off with another acronym. WAGMI: We’re all going to make it.
Bloomberg
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