A16z buys $90m of Optimism’s OP token in private deal

Sources report that Andreessen Horowitz has invested nearly $90 million in Optimism’s OP token, affirming its commitment to the Ethereum layer 2 solution.

The acquisition comes with a two-year vesting period, a common practice for major investments in the crypto sector that often includes purchasing tokens at a discount.

Optimism has seen a surge in activity, notably with the increasing utilization of its OP Stack, which is instrumental for developers in building and deploying layer 2 (L2) blockchains. In a significant development, the OP Stack was recently selected by the developers of the Celo blockchain for their new L2 project.

“Optimism has performed quite well. They’re still doing airdrops,” said one source about a16z’s investment.

“We are thrilled with the energy and momentum that Optimism is getting and excited for what’s to come,” expressed an Optimism spokesperson.

According to CoinMarketCap, the value of the OP token was around $2.58 at 9:45 a.m. EDT, reflecting a 10.67% increase over the last 24 hours and a 27.8% drop over the past month.

24-hour chart of OP from CoinMarketCap

The investment marks another strategic move into the crypto sector for a16z, which has previously invested in major crypto entities such as Coinbase. Launched in 2023, Coinbase’s Base, the exchange’s Ethereum layer 2 solution, competes with Optimism for developers and projects within the Ethereum (ETH) ecosystem.

Earlier on March 7, the Optimism Foundation disclosed the sale of about 19.5 million OP tokens, valued at nearly $90 million at the time, to an unidentified buyer. The sale is a 30% allocation from OP’s original treasury for the foundation’s working budget.

The foundation stated, “As this was a private sale, the terms and purchaser are not able to be disclosed.”

The terms of the sale permit the buyer to delegate their tokens to third parties, enabling participation in Optimism governance, though specific details remain undisclosed.

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