Coinbase’s public stock market debut today crystallizes enormous gains enjoyed by the crypto firm’s earliest investors, most notably Union Square Ventures and Andreessen Horowitz. But for Andreessen, the win is even sweeter, given its decision two years ago to double down on its stake even as USV was selling.
USV led Coinbase’s Series A round, becoming one of the biggest shareholders. But after Bitcoin’s price plunged in 2018 and 2019, USV sold about a quarter of its stake, leaving it with its current position of around 5% of the outstanding shares (including options), worth $5.3 billion at the opening trade of $381 Wednesday.
Andreessen, in contrast, was a slightly later investor. It led the company’s Series B round in 2013 and then participated in the next round two years later. But in 2018–19, when USV and other venture firms were trimming their positions, Andreessen was a buyer. It ended up as the second biggest shareholder after CEO and co-founder Brian Armstrong, with a roughly 11% stake worth $11.2 billion.