Crypto billionaire Fred Ehrsam pivots from Coinbase to Venezuela’s oil fields

Fred Ehrsam, the Coinbase co-founder, has signed a production-sharing agreement with Venezuela’s state oil company, PDVSA, marking his shift from cryptocurrency investing into the country’s oil sector.

Through Primavera, the investment firm he co-founded, Ehrsam has spent months in Caracas pursuing additional opportunities  including a bid for three more oil fields in the Orinoco Belt, as the Trump administration pushes foreign capital back into Venezuela’s energy industry.

Coinbase co-founder builds a foothold in Caracas

The Coinbase co-founder’s Venezuela push became increasingly visible in 2026, when he began meeting senior Venezuelan and US officials as well as business leaders. Bloomberg reported in May that Ehrsam had discussed potential investments spanning oil and gas, fintech and digital payments.

His presence in Caracas was notable because his background is primarily in technology and cryptocurrency rather than conventional energy. Ehrsam co-founded Coinbase with Brian Armstrong in 2012 and later helped establish Paradigm, a major crypto investment firm.

He has also become increasingly connected to the Trump administration and serves in an advisory capacity on science and technology matters.

The Coinbase co-founder’s interest appears to reflect a broader thesis about Venezuela’s recovery. Years of economic instability, sanctions and underinvestment have left major parts of the country’s energy infrastructure in need of capital and technical expertise, while the government is seeking foreign investment to increase production.

Bloomberg reported that Ehrsam told Venezuelan business leaders that the country’s assets remained deeply undervalued and that the time was right to invest. Those remarks, combined with his repeated visits, signaled a willingness to make a substantial long-term bet.

From crypto wealth to Venezuelan oil

The transition from cryptocurrency to petroleum may appear unusual, but Ehrsam’s investment strategy has increasingly focused on infrastructure and technology that can reshape traditional markets.

Primavera has positioned itself as an investor in Venezuela at a time when the government is reopening parts of the oil sector to foreign capital. The Wall Street Journal reported that the company recently signed production-sharing contracts with PDVSA and assembled a team to pursue lighter-oil opportunities in the Budare block.

The company is working with Dheeraj Verma, an oil industry veteran, as it seeks to develop projects that Primavera says can contribute to energy production and rebuilding Venezuela’s workforce and industrial base.

The Coinbase co-founder is also reportedly seeking control of at least three additional oil fields in Venezuela’s Orinoco Belt: Boca, Guico and Guara. Bloomberg reported in September that those fields are operated by Alvorada Heavy Industries, while US officials are considering changes to or revocation of existing contracts.

No final agreement for those three fields had been publicly announced at the time of the reports, making the negotiations distinct from the production-sharing agreement already signed by Primavera.

Trump’s Venezuela strategy opens the door

Ehrsam’s move is unfolding alongside a much wider US-backed restructuring of Venezuela’s oil industry. The Trump administration has encouraged foreign companies to invest heavily in the country, seeking to increase production and attract capital after years of decline.

Major energy companies have also begun positioning themselves. Chevron announced plans to invest more than $7 billion in Venezuela and increase its production through existing joint ventures, while Italian energy company Eni has also pursued new opportunities.

The Coinbase co-founder’s involvement is significant because it links the technology and cryptocurrency investment world with an oil sector traditionally dominated by major energy companies. Smaller firms with political connections are also competing for opportunities as Washington seeks to replace or renegotiate arrangements established during the Maduro era.

Yet the scale of Venezuela’s oil challenge remains substantial. The country holds the world’s largest proven crude reserves, but bringing those resources to market requires infrastructure, financing, skilled personnel and political stability. Large international oil companies have remained cautious despite the administration’s push.