Feeds

Bitcoin cred boosted by $25m cash infusion into Coinbase

Andreessen Horowitz venture capital flowing into digital currency manager

Reducing security risks from open source software

The Bitcoin sector has been given a new boost of confidence following a $25m investment by famed Silicon Valley venture capital firm Andreessen Horowitz.

The firm said that it would take a stake in Coinbase, a San Francisco startup that specializes in managing Bitcoin wallets and facilitates transactions between customers and merchants. The company reports some 600,000 user accounts and 16,000 merchant partnerships.

The company said that the investment would be its largest ever, dwarfing previous venture capital investments that had topped out at $6m.

Proponents of the Bitcoin platform are hailing the investment and the vote of confidence it gives to the digital currency.

"This funding solidifies our position as the largest and fastest growing Bitcoin service in the US," Coinbase said when announcing the investment.

"We plan to use the funds to expand our team, continue to educate the market, and promote the mainstream adoption of Bitcoin," they said.

In addition to the injection of funds, Andreeessen Horowitz said that it will appoint investor Chris Dixon to Coinbase's board of directors. The firm will also be hiring Gavin Andresen from the Bitcoin open source project to serve as an advisor.

"The Internet is based on a set of core protocols that specify how information such as text, photos, and code should be transmitted," Dixon wrote in a blog post..

"The designers of the Web built placeholders for a system that moved money, but never successfully completed it," he wrote. "Bitcoin is the first plausible proposal for an economic protocol for the internet."

Meanwhile, the technology and finance worlds continue to clash over the future of Bitcoin and the speculative market that has helped to push its exchange value to to nearly $900 on exchange markets at the time of writing.

Last week, Bank of America gave the currency a vote of confidence with a favorable report on its future, while banks in China condemned Bitcoin as an enabler of criminal cash transactions.®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.