An investor with a New York-based educational institution recently posted the following in a private LinkedIn group for Endowment and Foundations and other asset owners.
“Are any LPs seeing their VC funds invest in Bitcoin mining hardware manufacturers? It would be interesting to see how much support (these) startups are getting from the investment community.”
I offered to research the topic and found the following list of articles and resources.
The Bitcoin-Mining Arms Race Heats Up: (Bloomberg Business Week) Fascinating look at the increasingly complex code and hardware required to mine Bitcoin. Even the pickax and shovel providers in this gold rush could lose.
Why Bitcoin Matters : (New York Times) Opinion by Marc Andreesen of Andreesen Horowitz (investor in Coinbase). Independent researcher Robert Wagner debunks Andreesen in this Seeking Alpha piece: Bitcoin – The Good, The Bad And The Ugly
Silicon Valley catches Bitcoin fever (FT, may be behind a paywall)
Recent Bitcoin Venture Deals – A List: This link is from November, so there have probably been new deals. I found it in the Wall Street Journal’s Venture Capital Dispatch blog, a free resource that is also searchable. A search turned up this short clip from January 24: VIDEO: Is Bitcoin a Smart Investment? Only If it Completely Changes, Venture Investor Says
Wall Street Bitcoin Fans Try to Make Real Money From Virtual (Bloomberg Personal Finance). Spoiler Alert: Don’t quit your day job!
Why bitcoin could fail (Fortune). Article written by Sanjay Sanghoee. Fortune’s Dan Primack is a good resource on venture capital and private equity news. Click here for a full list of Fortune articles about bitcoin.
Do you have information on specific venture capital commitments to bitcoin mining or related startups? Additional resources? An opinion on bitcoin as an investment opportunity? Please share in the comments.