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Bitcoin business Coinbase raises $25 million in funding

Bitcoin business Coinbase raises $25 million in funding
Bitcoin company Coinbase raised $25 million in its latest fundraising round. (George Frey / Getty Images)

San Francisco bitcoin startup Coinbase raised $25 million in its latest fundraising round, the largest amount ever raised by a company involved with the digital currency.

Coinbase, which offers a digital wallet service that enables users to buy and use Bitcoins, has raised a collective $31 million, the company said in a blog post.

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"We are nearing a tipping point for broad adoption of Bitcoin -- what we at Coinbase believe to be one of the most important shifts in the global economy in our lifetime," the blog said.

Led by Andreessen Horowitz, the fundraising efforts also included existing investors Union Square Ventures and Ribbit Capital. Chris Dixon of Andreessen and Fred Nixon of Union Square will also join the board of Coinbase.

Bitcoin is a fast growing digital currency that has been championed most prominently by the twins Cameron and Tyler Winklevoss, who are best-known for their years-long battle with Mark Zuckerberg over Facebook. Users can already spend the currency at many businesses, including tuition at one university in Cyprus.

In a blog post, Dixon said bitcoin could solve problems with current online payment services that are expensive to maintain and establish a new way to provide financial systems for people.

"The press tends to portray bitcoin as either a speculative bubble or a scheme for supporting criminal activity," Dixon wrote. "In Silicon Valley, by contrast, bitcoin is generally viewed as a profound technological breakthrough."

Coinbase said it plans to use the funding to hire more employees, educate the market and promote adoption of bitcoin. More than 600,000 bitcoin wallets have been opened via Coinbase.

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