Coinbase has officially become the first bitcoin "unicorn" as the wallet provider has raised $100 million in Series D funding to reach a valuation of $1.6 billion. 

"Coinbase experienced unprecedented growth over the last year, and we have now exchanged over $25 billion of digital currency for our customers," Brian Armstrong, Coinbase co-founder and CEO, wrote in a company blog post. "We’ll be using this new funding to continue scaling even further."

The round was led by IVP, with participation from Spark Capital, Greylock Partners, Battery Ventures, Section 32 and Draper Associates.

Armstrong outline three ways Coinbase will use the new funding:

1. Increase the size of engineering and customer support teams to improve the customer experience.
2. Open a GDAX office in New York City, further investing in Coinbase's ability to serve institutions and professional traders.
3. Invest in Toshi, to help accelerate digital currency's shift from speculative investment to global payment network.

Toshi is Coinbase's free bitcoin API for software developers.