Legendary Silicon Valley venture capital firm Andreessen Horowitz is betting big on Bitcoin, unveiling a $2.2 billion cryptocurrency fund. On the heels of their announcement, general partner Katie Haun boldly stated, “With crypto, we think that its potential for growth is as big as the potential for the internet.”
Leading the Fund: Katie Haun
Haun, who will co-chair the new crypto fund, has an extensive history of success as a venture capitalist and former crypto regulator and prosecutor, winning every case she argued. Haun worked in the Justice Department for 11 years, spending the latter half of her time immersed in the world of cryptocurrency. She now sits on the board of Coinbase, the popular cryptocurrency exchange that went public in April 2021. She is also renowned for becoming the first woman general partner for Andreessen Horowitz (a16z).
Haun talked about her experience and interest when first getting into the cryptocurrency realm from a regulatory standpoint: “I founded the U.S. government’s first cryptocurrency task force out of the Justice Department and part of our job was to go meet with companies or entrepreneurs in the space.” She was able to use blockchain technology to prosecute double agents in a highly publicized case, and companies such as Coinbase with strong compliant records were able to assist with the case. The vocal support of a public figure such as Haun is a huge benefit for the crypto community, especially as her background can soothe regulatory concerns of cryptocurrency. This is expected to make waves with copycat investors who look to these public figures to find their next big payout.
About Crypto Fund III
The vast majority of the $2.2 billion fund is “deployed into the tokens themselves, the assets themselves now [including] Bitcoin or Ethereum, for example,” shares Haun. While she cannot share the final numerical values, the firm has a “sizable position in both Bitcoin and Ethereum”, which is great news for investors and miners of these currencies as the firm has a strong history of hitting gold before other firms have even had time to find their picks and shovels. This is the third cryptocurrency fund Haun will be co-leading for the firm, with the initial two being worth $300 million and $515 million, respectively.
"The size of this fund speaks to the size of the opportunity before us: crypto is not only the future of finance but, as with the internet in the early days, is poised to transform all aspects of our lives,” shared a16z in their Crypto Fund III announcement. The assurance in the future of cryptocurrency from the firm has inspired confidence in mainstream investors.
The Proactive History of a16z
The firm's large investment into cryptocurrency is a great sign due to its extensive history of early investments into booming companies and products. This traces back to the founder and general partner Marc Andreessen, who released the first graphical browser in the 90s, opening up the internet for people without computer science backgrounds. He made many early predictions about the changes of technology into mainstream society, many of which have come into fruition, such as the popularity of social networking sites, cloud computing, and the interlocking relationship between browsers and operating systems. a16z, which he founded with Ben Horowitz, has also been an early investor in companies like Instagram, Groupon, Skype, and Pinterest.
Forbes articulated Andreessen’s knack for finding untapped opportunities in 2012, saying: “Andreessen has been consistently right about where things are going for 20 years… And if you want to find the companies that will create the future? You could do worse than to just look at what Andreessen Horowitz is choosing to invest in.” This statement rings true almost ten years later, shining optimism on the cryptocurrency world.
What This Means for Mining
Despite Bitcoin price drops, a16z is going full speed ahead in its investment into the crypto space. For value investors in the crypto market, this bold play by an influential VC is a strong signal of the impending resurgence of Bitcoin’s price. Those who bet on Bitcoin during its last valley were richly rewarded as its price surged higher than ever.
Bitcoin mining presents an even more attractive opportunity: using long-lasting equipment to generate brand new Bitcoin. With mining difficulty dropping precipitously, the timing couldn’t be better as miners earn almost a quarter more Bitcoin. This approach can generate a larger, more stable return on investment compared to direct purchases of tokens, and with a smaller upfront cost.
For those hoping to take advantage of the reliable and increasing profits of mining, it’s important to get ahead of the curve and purchase your equipment and hosting while it’s still available at low prices. Start your mining right with the experts at Wattum, who can help you achieve maximum efficiency and performance with their time-tested strategies.