Winklevoss Twins' Bitcoin Bet: Millions Invested

The Winklevoss twins, Tyler and Cameron, are known for their dispute with Mark Zuckerberg over the creation of Facebook, as well as their success in the 2008 Beijing Olympics. However, they have also gained fame as early investors in Bitcoin and other cryptocurrencies. In April 2013, the brothers announced they owned approximately $11 million in Bitcoin, with some reports suggesting they bought coins for as little as $10 each. The Winklevoss twins' investment in Bitcoin has paid off handsomely, with their holdings growing in value over time. They have since founded Gemini, a cryptocurrency exchange, and have become known as pioneers in the crypto space.

The Winklevoss twins became Bitcoin billionaires in 2017

The Winklevoss twins, Tyler and Cameron, became Bitcoin billionaires in 2017. The brothers first rose to fame in the mid-2000s when they sued Meta founder and CEO Mark Zuckerberg, claiming he stole their idea for Facebook. They received a settlement of $65 million in cash and Facebook stock.

The twins then turned their attention to Bitcoin, investing $11 million in 2013 when the cryptocurrency was priced at $120 per coin. They became early adopters of the digital asset and, by December 2017, their holding was worth more than $1 billion as the price of Bitcoin surpassed $11,700. The New York Times reported that the Winklevoss twins' Bitcoin holdings were worth about $1.3 billion, with an additional $350 million in other cryptocurrencies like Ethereum.

The brothers' journey to becoming Bitcoin billionaires was not without its challenges. In 2013, they were involved with BitInstant, one of the first American Bitcoin exchanges, whose founder Charlie Shrem was later arrested and sentenced to prison for operating an unlicensed money business. Despite this setback, the Winklevoss twins remained committed to the potential of Bitcoin and cryptocurrency.

In 2014, they founded Gemini, a cryptocurrency exchange that built a reputation as one of the safest places to buy, sell, and store cryptocurrency. Gemini was one of the first exchanges to be licensed by the New York State Department of Financial Services, which is significant due to New York's strict crypto regulations.

The Winklevoss twins' belief in Bitcoin and their persistence in the face of setbacks paid off when the cryptocurrency surged in value in 2017, making them billionaires. Their story serves as an example of how investing for the long term and embracing new technologies can lead to significant financial success.

They invested their $65 million Facebook settlement in Bitcoin

The Winklevoss twins, Tyler and Cameron, first rose to fame in the mid-2000s when they sued Meta founder and CEO Mark Zuckerberg, claiming he stole their idea for Facebook. After a lengthy legal battle, they settled with Zuckerberg in 2008 for $65 million in a mix of cash and Facebook stock.

The twins used this settlement money to invest in dozens of startups through their family office, Winklevoss Capital, established in 2012. They also made a timely investment in what was then a little-known digital token, Bitcoin. In April 2013, they revealed that they had invested $11 million in Bitcoin when it was trading at just $120 per coin. At that point, they were rumored to own 1% of all the Bitcoin in circulation.

The Winklevoss twins' early investment in Bitcoin paid off handsomely. By December 2017, their Bitcoin holdings were worth more than $1 billion, with the price of one coin surpassing $11,700. They became some of the first Bitcoin billionaires, and their crypto journey offers valuable lessons on long-term investment in cryptocurrency.

The brothers' crypto investments and ventures did not stop with Bitcoin. They went on to establish the cryptocurrency exchange Gemini in 2014, which acquired the NFT marketplace Nifty Gateway in 2019, ahead of the NFT market boom in 2021. They also invested in crypto lenders and other crypto-focused ventures, further solidifying their presence in the crypto industry.

They founded Winklevoss Capital in 2012 to invest in startups

The Winklevoss twins, Tyler and Cameron, founded Winklevoss Capital in 2012 to invest in startups. Headquartered in New York's Flatiron District, the firm invests across multiple asset classes, including seed funding and infrastructure for early-stage startups. Winklevoss Capital has invested in almost 100 projects, with a focus on crypto-focused investments, fintech, direct-to-consumer brands, education, and gaming.

Winklevoss Capital has been an active venture capital investor in early-stage startups, providing guidance, relationships, and capital to entrepreneurs. The company seeks out individuals with three essential qualities: acumen, artistry, and audacity. It believes in reinforcing the pursuit of a frictionless world and a better human experience.

Some notable investments by Winklevoss Capital include:

• August Locks (co-invested with Bessemer Venture Partners, Comcast Ventures, and Qualcomm Ventures)
• Cabify (co-invested with Rakuten)
• Caviar (acquired by Square; Andreessen Horowitz was also an investor)
• Flexport (co-invested with Founders Fund, Joe Lonsdale, SoftBank Vision Fund, and First Round Capital)
• FiscalNote (co-invested with Temasek)
• Kindbody (co-invested with Chelsea Clinton)
• Makespace (co-invested with Carmelo Anthony and Nas)
• Teachable (co-invested with Naval Ravikant)

In addition to their investments in early-stage startups, the Winklevoss twins are also known for their involvement in Bitcoin and other cryptocurrencies. In 2013, they revealed that they owned approximately 1% of all bitcoins in circulation, worth about $11 million. They have since become crypto pioneers and Bitcoin billionaires, with a focus on long-term investments in the digital economy.

They bought $11 million worth of Bitcoin in 2013

The Winklevoss twins, Tyler and Cameron, first rose to fame in the mid-2000s when they sued Meta founder and CEO Mark Zuckerberg, claiming he stole their idea for Facebook. They received a settlement of $65 million in cash and Facebook stock. The brothers then used this money to invest in Bitcoin, a little-known digital token at the time.

In April 2013, the Winklevoss twins revealed they had invested $11 million in Bitcoin when it was trading at just $120 per coin. This investment was made through Winklevoss Capital, their family office established in 2012. At this point, the brothers were rumoured to own 1% of all the Bitcoin in circulation. Some reports even suggest they bought some of their Bitcoin for as little as $10 per coin.

The Winklevoss twins' early investment in Bitcoin paid off handsomely. By December 2017, their Bitcoin holdings were worth more than $1 billion, with the price of one coin surpassing $11,700. The twins' total Bitcoin holdings were valued at about $1.3 billion, and they held an additional $350 million in other cryptocurrencies like Ethereum.

The Winklevoss twins became evangelists for Bitcoin, and in 2014, they created the crypto exchange Gemini Trust Co. They also founded Winklevoss Capital, which provides angel investments to early-stage companies and entrepreneurs. The company has invested in almost 100 projects and currently holds 20 crypto-focused investments in its portfolio.

The twins' journey with Bitcoin hasn't always been smooth sailing, however. Shortly after announcing their $11 million investment in 2013, Bitcoin's price fell from $180 to $80 in just one week, marking the first of many dips in the volatile cryptocurrency market. Despite these fluctuations, the Winklevoss twins held on to their Bitcoin, demonstrating their long-term commitment to the digital currency.

They founded the crypto exchange Gemini in 2014

The Winklevoss twins, Tyler and Cameron, founded the cryptocurrency exchange Gemini in 2014. Based in New York City, the platform is available in over 70 countries. The twins were early investors in cryptocurrency and struggled to find a platform that allowed them to securely manage their growing portfolio. As a result, they built Gemini to deliver a trusted platform that focused on strong security controls and compliance.

Gemini is a full-reserve and highly-regulated cryptocurrency exchange and custodian. It was one of the first to be licensed by the New York State Department of Financial Services (NYSDFS), which is significant given that New York has some of the strictest crypto regulations in the US. The platform is also certified, regulated, and licensed, with a priority placed on the security of its users' assets.

Gemini offers a user-friendly interface and strong security features for both individual and institutional investors. It provides comprehensive trading, earning, and staking features, with access to NFTs through Nifty Gateway, a platform for non-fungible tokens that was bought by Gemini in 2019.

Gemini's fee structure is relatively high compared to other platforms, and staking is limited to ether and polygon for US traders. The platform also offers a Gemini Mastercard, which allows users to earn cash-back rewards in the form of Bitcoin, ether, and other cryptos when they spend on everyday expenses.

Frequently asked questions