Feeds

Bitcoin cred boosted by $25m cash infusion into Coinbase

Andreessen Horowitz venture capital flowing into digital currency manager

Eight steps to building an HP BladeSystem

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 fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
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
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.