Peter Thiel Founders Fund Cuts Bitmine Stake 50% After 13G Filing

Peter Thiel Founders Fund Reduces Holdings as Ownership Falls Below 5%

Recent SEC filings indicate that Peter Thiel Founders Fund had greatly divested its interest in Bitmine Immersion Technologies, raising questions on the timing, regulatory compliance, and the overall meaning of the high-profile share sale.

Peter Thiel of Founders Fund sold Bitmine shares.

Peter Thiel is a co-founder of Founders Fund, which is a venture capital firm that has sold close to half of its old stakes in Bitmine Immersion Technologies. The fund currently has 2,547,001 shares, as compared to its previous 5,094,000 shares. This will be a significant decrease in its exposure to the company.

The sale represents a strategic change or rebalancing of the portfolio of the fund. The reasons were not explicitly revealed, but such partial exits are typical of venture investors, and they change their stance depending on market conditions, performance expectations, or internal strategy. Founders Fund nonetheless has a small stake in Bitmine, albeit reduced.

Source: Wu Blockchain X

Their ownership dropped below 5%

• In the past, Founders Funds owned approximately 9.1% of the outstanding shares of Bitmine. Following the sale, it lost its ownership to 0.9% leaving the firm far below the regulatory limit of 5%.

• This limit is significant since investors with 5% or more of a publicly traded firm are required to comply with more rigorous and quicker reporting policies. 

• The investor becomes a passive holder once the stake is below this threshold and gets greater flexibility in the disclosure schedules. 

• Thus, the fall to less than 5% officially transformed the reporting requirements of Founders Funds.

Why a Schedule 13G filed?

The filing was made in Schedule 13G, which is a form filed by investors with a significant amount of shares but without any intention to control or direct a company. 

Submission of 13G as opposed to 13D will indicate that Founders Fund is not trying to undertake activism or participation in governance.

It is also easier and associated with less strict deadlines, which is why this type is a correct option to use when passive investors decide to dilute their ownership.

Source: SEC official website

What was the cause of the delay in reporting?

• Although the sale of shares was made before the date of September 30, 2025, the filing was only made on November 14, 2025. 

• The delay was initially a matter of concern, yet it is entirely in line with the SEC requirements.

• In case a passive investor has a stake below 5%, he or she can take up to 45 days after the calendar quarter ends to file a revised 13G. 

• The reduction and the filing are separated by a period of about 45 days, which falls within this allowed reporting period. 

• Thus, although this might seem to be a slow move, the delay is completely legal and commonplace.

Several entities were listed due to the fund structure.

The filing identifies a number of related entities, which are FF Consumer Growth II, LP; FF Consumer Growth, LLC; Founders Fund Growth Management, LLC, and others. It might appear to be complicated, yet it is the typical form of big investment funds.

All legal entities have their own roles: some of them are direct shareholders, others are general partners or managers, and Peter Thiel is the governing manager among them. These layered structures are typical of large venture capital operations in terms of legal, tax, and operational efficiency.

What does it mean overall?

The dilution is an indicator that the company is reducing its exposure instead of doubling down. It can be an indication of profit-taking, changes in the portfolio.

Notably, the passive filing means that the company does not intend to affect the management or the strategic decisions of Bitmine. In the case of Bitmine, the sale does not mean that operations will be immediately affected, but it is an indication that a large early backer is taking a backseat.

Founders reduced stake and timely 13G filing highlight a strategic shift rather than a dramatic move.