Bitcoin wallet and platform provider Coinbase has raised $25 million in Series B funding. The San Francisco-based company said it now has 600,000 consumer users of its Bitcoin wallet along with 16,000 merchants, and is averaging 10,000 new customer sign-ups per day.

The $25 million investment was needed for scaling up and keeping up with growing consumer and merchant demand, Coinbase said in a blog post.

The Series B funding round was led by investment group Andreessen Horowitz, with participation from Coinbase's existing investors Union Square Ventures and Ribbit Capital. Chris Dixon from Andreessen Horowitz and Fred Wilson from Square Ventures have joined Coinbase's board.

Coinbase, which was founded in June 2012, said its latest financing, the largest to date, brings the total raised by the company to $31 million.

"We plan to use the funds to expand our team, continue to educate the market, and promote the mainstream adoption of Bitcoin," Coinbase said.

Coinbase also plans to expand its referral program, which provides users $5 in Bitcoin for free when they refer a friend who buys or sells at least $100 of Bitcoin.

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