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So you're saying that 21.co/Earn.com bought BTC with some of the invested capital, held it as BTC rose, and then distributed it to its shareholders? One of whi
by jjallen 9y ago
So you're saying that 21.co/Earn.com bought BTC with some of the invested capital, held it as BTC rose, and then distributed it to its shareholders? One of which is A16Z.
This seems possible, because, as we know, the price of BTC has fallen recently from ~$16k to ~$7k. So the gains could be large if they did indeed buy BTC with some of the capital they raised, but probably not $1 billion, or at least I would guess against that. The timing and distributions would have to have been quite right.
But, I will say that at 11-50 employees[0] there should have been quite a bit of capital left over from the ~$150 million they raised, even after a few years of burn.
[0] https://www.crunchbase.com/organization/21e6 https://www.crunchbase.com/organization/21e6
- tristanj 9y agoI mean we can run through the math. In March of 2015, 21.co/Earn.com raised $115m from a16z. In June of 2015, the price of BTC was about $240 each. If we assume half the investment went into bitcoin, it means they acquired $115m/2/($240/BTC) = ~240,000 BTC At today's price of $8000/BTC, assuming they never sold, those coins would be worth $1.9B. So it is plausible they hold more than $1B in bitcoin.
- jjallen 9y agoIt seems like this would have leaked if Earn.com had earned this much, or if A16Z had earned a large distribution in one year (like last), it would have had to have been reported to their LPs in the net asset value update. And perhaps it did leak, because we're talking about it. But then I would still guess there would be more discussion about this if an LP leaked it. There would be ample documentation of this.
- vasilipupkin 9y agoalso, why would a company that holds a billion dollars in capital sell for 100 mln ?