Leading venture capitalist firm Andreessen Horowitz has announced that it is investing $300m in buying up cryptocurrencies including bitcoin and ethereum.
The California based company first invested in the blockchain technology in 2013 when it contributed to a $25 million funding round for the cryptocurrency exchange Coinbase. It followed that up by investing in Ripple, and blockchain startups like OpenBazaar and Cryptokitties.
Despite the current slump in prices, Andreessen Horowitz says it has no plans of selling any of its crypto assets, saying instead that it plans to hold on them for at least another 5 years. In a blog post detailing the project, Andreessen Horowitz partner Chris Dixon explained the company’s investment policy.
“We are long-term, patient investors. We’ve been investing in crypto assets for 5+ years. We’ve never sold any of those investments, and don’t plan to any time soon… If there is another ‘crypto winter,’ we’ll keep investing aggressively.”
According to Dixon, the investment fund, christened “a16z crypto” will be led by him and focus on crypto assets and other projects that build on blockchains including ICOs.
Andreessen Horowitz is one of the most respected VC firms in the world. In 2011 it ranked on the Forbes Midas list of the top 10 Tech Investors.
The company first made headlines in 2009 after it invested heavily in Skype despite the uncertainty surrounding it, only to make a killing 2 years later after Microsoft acquired Skype for $8.5 billion.
It has since gone on to invest in more multi-billion dollar startups than any other company, it currently manages more than $4 billion in assets and its impressive portfolio includes AirBnB, Uber and Foursquare.
The news of Andreessen Horowitz’s investment has renewed hopes within the crypto community that prices will rally again after the prices of major cryptocurrencies plunged to an 8-month low, with bitcoin trading below $7000.
Analysts say the investment by Andreessen Horowitz may well open the floodgates to even greater inflows of money into the cryptocurrency sector from institutional investors.