George Osborne's venture capital firm is sitting on gains of 3,000pc following a bet on an obscure cryptocurrency that has surged to a $16bn (£11bn) valuation in a little over a fortnight.
The Silicon Valley fund 9Yards Capital is understood to have invested in digital currency Internet Computer, known as ICP, which was launched by the non-profit group Dfinity a fortnight ago.
9Yards was founded by George's brother Theo and counts the former Chancellor as a strategic adviser.
It backed Dfinity in 2018. Rather than taking equity, Dfinity investors were awarded tokens in its digital coin ICP .
Early backers who invested $97m in 2018 currently hold 23.2m coins in total, according to analysts Messari.
In its 2018 financing, these coins were valued at $4. The digital coin launched on cryptocurrency exchanges last week in one of the most spectacular debuts of a cryptocurrency to date.
Its price surged as high as $620 per coin, before falling back. One ICP token is now worth more than $125.
On a fully diluted basis, once all the digital tokens are released into the market, their stake would be worth $2.9bn.
Other investors include early Facebook backers Andreessen Horowitz.
Investors are subject to a lock-up agreement and cannot sell all their tokens at once. 9Yards did not respond to a request for comment.
The ICP tokens are part of an effort by British founder Dominic Williams to decentralise the backbone of the internet.
The aim is to use the currency to run internet applications independent of the computing power of Big Tech firms and cloud providers.
Cryptocurrency markets have been on a wild ride since the start of the year. The price of Bitcoin, the most popular cryptocurrency, soared as high as $65,000 in April before plummeting last week to as low as $30,000 following plans for a crackdown in China.
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