Bitcoin-related businesses are popping up like mushrooms, reflecting the growing popularity of the virtual currency. One of the most successful bitcoin-related businesses is digital wallets or bitcoin wallets.
Coinbase, one of the fastest-growing bitcoin wallet services, announced yesterday it had completed a $25 million Series B financing round. Andreessen Horowitz led the financing round. This is the company’s second round of financing, having already raised an initial $5 million back in March. According to TNW, this $25 million funding was the largest financing round ever for a bitcoin startup.
Coinbase growing rapidly
Coinbase also announced that it has surpassed the 600,000 user mark. That’s double the number of users that it had as of mid-October, representing a current growth rate of around 150,000 wallet users a month. The company recently claimed to be adding 10,000 users a day.
Union Square Ventures and Ribbit Capital participated in the first financing round and also provided funding for this Series B round. Following this round, Andreessen Horowitz’s Chris Dixon and Union Square Ventures’ Fred Wilson will both join the Coinbase board of directors.
According to the company, they will use the funding to augment its staff of eight and “continue to educate the market, and promote the mainstream adoption of Bitcoin.”
Coinbase was also among the more than 400 companies participating in the recent Bitcoin Black Friday promotion, and has announced that it plans to expand its existing referrals program so users make more cash when referrals buy or sell Bitcoins.
Bitcoin wallet provider’s growth
The management of Coinbase has also worked diligently to to expand its marketplace presence and to develop partnerships. The bitcoin wallet provider already works with more than 16,000 merchants, including early Bitcoin supporters such as OkCupid, Khan Academy and Reddit.
The company summed up its current status in a blog post. “We are making it easier for consumers to buy, merchants to sell, and developers to build, and we can’t wait for our next chapter.”
See also: Why Banks Do Not Like Gold Or Bitcoin