Morning Minute: a16z Secures $15B, Focuses on AI and Cryptocurrency

Morning Minute: Daily Crypto Insights

Morning Minute is a daily newsletter authored by Tyler Warner. The perspectives shared are his own and do not necessarily represent those of Decrypt. You can subscribe to Morning Minute on Substack.

Good Morning!

Here are the key highlights for today:

• Major cryptocurrencies remained steady over the weekend; Bitcoin is trading at $90,600.
• Monero (XMR) surged to $600 overnight, reaching a new all-time high and gaining 33% over the week.
• Jerome Powell released a statement attributing charges against him to his refusal to comply with Trump’s requests, leading to a spike in gold and silver prices.
• Andreessen Horowitz (a16z) secured $15 billion across several funds, focusing on America’s future with AI and crypto as priorities.
• X (formerly Twitter) revealed plans for Smart Cashtags, which will display real-time charts alongside ticker symbols.

a16z Secures $15B to Drive AI and Crypto Innovation

Andreessen Horowitz (a16z) has completed its largest fundraising round to date, with a strong emphasis on cryptocurrency.

📌 Key Developments

a16z announced it has raised over $15 billion across multiple new funds, marking one of the largest venture capital raises in recent years. The breakdown includes:

• Growth: $6.75 billion
• Applications: $1.7 billion
• Infrastructure: $1.7 billion
• American Dynamism: $1.176 billion
• Bio + Health: $700 million
• Other strategies: $3 billion

Historically, a16z has been a major player in crypto investments, previously launching:

• $300 million for its first crypto fund in 2018
• $515 million for Crypto Fund II in 2020
• $2.2 billion for Crypto Fund III in 2021
• $4.5 billion for Crypto Fund IV in 2022 (including $1.5 billion for seed and $3 billion for venture investments)

Noteworthy investments include Coinbase, Solana, Uniswap, OpenSea, Phantom, and more recent ventures such as Kalshi and EigenLayer.

🗣️ Leadership Perspective

“As a leading venture capital firm in America, we play a significant role in shaping the nation’s technological future. Our goal is to help the United States lead the next century of innovation.” – Ben Horowitz, co-founder of a16z

🧠 Why This Matters

Examining a16z’s investment choices offers insight into their vision for the future:

• AI infrastructure: Focusing on computing power, development tools, and platforms that will drive the next wave of software advancements.
• American Dynamism: Investments in defense, housing, supply chains, and other sectors critical to national interests.
• Infrastructure and Applications: Building foundational layers that can endure various market cycles and consistently capture value.

For crypto specifically, a16z is targeting:

• Enhanced stablecoin and payment networks
• Expansion of tokenized assets and settlement systems
• Infrastructure to support institutional adoption
• Integration of crypto and AI technologies

While this phase may seem less exciting, it signals a period of steady growth and maturation for the crypto sector.

Looking Ahead

Expect continued growth in stablecoin use, tokenized assets, and institutional infrastructure. The intersection of crypto and AI remains the biggest unknown, and we’ll be monitoring developments closely.

🌎 Macro Trends in Crypto and Markets

Notable headlines from the broader market:

• Leading cryptocurrencies were mostly unchanged as the week began; Bitcoin held at $90,600, Ethereum rose 1% to $3,110, Solana increased 2% to $140, and XRP fell 2% to $2.04.
• IP (+20%) and XMR (+15%) led the top gainers, with XMR reaching a new all-time high at $590.
• Federal Reserve Chair Jerome Powell released a video statement, asserting that criminal charges against him stem from his refusal to lower interest rates as requested by Trump.
• X (Twitter) announced the upcoming launch of “Smart Cashtags,” which will provide live crypto and stock price data next to ticker symbols.
• VanEck projected that Bitcoin could reach $53 million by 2050, citing factors such as long-term adoption, settlement, and store-of-value potential, supporting a 29% annual growth rate.
• Andreessen Horowitz (a16z) raised $15 billion to support American Dynamism, with a focus on AI and crypto.
• Ripple received approval from the UK’s FCA to expand its crypto payment services.
• BNY Mellon introduced tokenized deposit services for institutional and digital-native clients.
• A new House bill proposes to prohibit lawmakers and federal officials from participating in prediction markets.
• Tether froze $182 million in USDT connected to Venezuelan oil transactions.

Corporate Treasuries & ETFs

• Bitcoin ETFs experienced another $250 million in net outflows on Friday, marking four consecutive days of withdrawals.

Memecoins & Onchain Movers

• Major meme coins mostly declined: Dogecoin -3%, Shiba Inu -3%, PEPE -2%, Bonk -2%, Pengu -2%, WIF -3%, and Fartcoin -4%.
• Testicle was a standout onchain mover, jumping 20% to $20 million. Other notable gainers included Ralph Wiggum (+125%), SPSC (+45%), and SOL (+23%).

💰 Token, Airdrop & Protocol Updates

• Pump Fun teased updates to its creator fee-sharing model, altering incentives for coin creation.
• Rain announced a $250 million funding round at a $1.95 billion valuation to expand its stablecoin offerings.

🚚 NFT Market Developments

• Leading NFT collections saw modest gains over the weekend: CryptoPunks remained at 28.8 ETH, Pudgy Penguins dipped 1% to 4.83 ETH, BAYC rose 1% to 5.38 ETH, and Hypurr dropped 3% to 514 HYPE.
• Good Vibes Club (+26%), Genuine Undead (+28%), and Chimpers (+28%) were among the top performers.
• A Spirit Azuki NFT sold for 28 ETH (approximately $87,500).