How we dug 21.co out of an $80 million hole, turned it into Earn.com, built it into a fast-growing business with millions in revenue, and sold it to Coinbase. In May 2015, I became CEO of a company that was in a very difficult situation.
21.co had been started as 21E6, a bitcoin mining company with a sizable data center footprint and a monthly bill to match. The company was set up to return mined bitcoin to its shareholders and generated tens of millions in revenue during its first calendar year of operation.
It had thus attracted a substantial amount of investment. However, it had spent most of this capital on chips, hardware, and data center deployments.
And when the Bitcoin hashrate soared and the price of BTC crashed over the course of 2014, the company landed up in a Loudcloud-like scenario with long-term data center leases and falling revenue. Many other mining companies around this time suffered similar fates and died, including Hashfast, Cointerra, Alydian, Aquifer, and others.
While I had helped 21E6 get started back in early 2013, I hadn’t been operationally involved. Instead, I was busy working full time at Andreessen Horowitz as a General Partner. Read more from medium.com…
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