Looking at their admittedly bad website, I am thinking the following:

Let's assume that the next big thing is not centralized services, but distributed ones. We've already gone through periodic waves of P2P mania. Even Bittorrent got a fair amount of VC. I think it is not unreasonable to gamble that in the next 10 years distributed systems and protocols will dominate and client/server will fall into disuse.

Of course it might not happen, but if it did, where would you need to position yourself in order to be able to profit massively from it? There are several major problems with P2P applications. For example, you need coordination, authentication and resistance to bad players.

Bitcoin has a reputation for having solved many of these problems for its domain. Although it might not be the best way to solve all of these problems (specifically proof of work may not be optimal for many problems), imagine that you are trying to sell your idea to a VC company. Can you come up with a convincing story about how this technology can be used to solve most of these problems? Even on HN there are a large number of people who think that the Bitcoin implementation of a block chain is the solution to practically every distributed authentication/coordination problem.

Now imagine building a chip that would enable the use of this technology in every day equipment. You could look at it as the modern day equivalent to the FPU or GPU. It is distributed authentication/coordination hardware acceleration. As such, if the world does go to a distributed model of communication/computation, it will practically be required. As the defacto standard, every single device on the planet will need to include your chip.

Are they really thinking to mine bitcoins? There are some potential applications, perhaps. For example back in the day Microsoft proposed that there be a "postage fee" for email. This would make it expensive for people to spam freely. Imagine a "postage fee" for distributed services, like authentication, whatever. The fee needn't be large and the idea is that the device could mine enough BTC to pay for average usage. Anybody who wanted more would have to pay for it. But Bitcoin does provide a convenient method for doing these kinds of really micro payments.

Note: I think it's an absolutely stupid idea that can't work due to the nature of service fees once new BTC runs out, but I can well imagine a VC company completely overlooking this detail.

In any case, I can totally see the potential for $100 million or so investment. I think the web page may intentionally have a lot of fluff -- things that are really improbably or impossible but are there because some key stakeholders expect to see it there. I think the challenge for them is that they are walking into an arena very early where there is a total vacuum of applications that are currently being used. What they will need to do is not only build the hardware infrastructure but also convince a lot of people to write applications of the infrastructure so that everybody wants it. Probably this is one of those instances where you are better off being second or third to the market (like, for example, the Apple Newton).