Tag: Digital Currency Group

Digital Currency Group Lands $600M Debt Funding

by Blockchain News

Grayscale Investments’ parent company Digital Currency Group (DCG) said it has secured a $600 million credit funding, billed to power its many diverse operations. 

As announced by the company, Eldridge led and served as the administrative agent of the credit facility, and amongst the lenders and funds which bankrolled the facility includes Capital Group, Davidson Kempner Capital Management, and Francisco Partners. The credit facility will allow the DCG to draw any amount at any time as it looks to bolster its operational capabilities across the board.

“This financing strengthens our ability to respond dynamically to opportunities in the market,” said DCG Founder and CEO Barry Silbert. “We’re very pleased to partner with this cohort of high-quality institutional lenders and, as a profitable and rapidly growing company, we are fortunate to be able to access this growth financing with an attractive cost of capital.”

Beyond Grayscale Investments has more than $50 billion in Assets Under Management (AUM) and DCG is also the parent company to outfits including Genesis, TradeBlock, Luno, Foundry, and Coindesk.

According to the firm, the better part of the funding will be used to bankroll these agencies amidst an ongoing surge in demand in crypto-related services from both retail and institutional investors.

“We’ve solidified our premier market position in recent years through the development and growth of our diversified subsidiaries, continued expansion of our investment portfolio, and via acquisitions,” said DCG CFO Michael Kraines. “This debt financing is an important milestone to ensure DCG continues to play a leading role in the financing and development of this remarkably dynamic sector.”

Earlier this month, the Digital Currency Group raised $700 million from a secondary share sale, capitalizing on the growing desire of hedge funds to bet on promising crypto-focused entities. Through the new funding round, the Digital Currency Group and its subsidiaries will look to extend their position as a leader in the blockchain ecosystem.

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DCG Secures $600M Credit Facility

by Cryptobriefing

Key Takeaways

  • Digital Currency Group announced a $600 million credit facility today.

  • This comes in the same month as its earlier $700 million equity raise.

  • Digital assets may be volatile, but institutional money continues to flow into the space.




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Money continues to flow into the cryptocurrency industry, this time at a particularly deep institutional level. 

DCG Raises $600 Million Credit Facility 

Digital Currency Group (DCG), the behemoth digital asset conglomerate behind CoinDesk, Grayscale ($50 billion in assets under management), and Foundry (a bitcoin mining leader), announced today that it has raised a new $600 million credit facility. 

This should lend some flexibility to DCG, as a credit facility allows firms to generate capital over an extended period of time without having to repeatedly reapply for a loan each time it needs money to fund its various ventures or to execute on its strategy. 


On the announcement, DCG Founder and CEO Barry Silbert said, 

“The financing strengthens our ability to respond dynamically to opportunities in the market. We’re very pleased to partner with this cohort of high-quality institutional lenders and, as a profitable and rapidly growing company, we are fortunate to be able to access this growth financing with an attractive cost of capital.”

This is the first time DCG has entered into debt capital markets, and it follows a $700 million equity raise at the beginning of November that valued it at $10 billion. That raise was led by SoftBank and included funding from Alphabet Inc. (Google); it represented the second-largest raise in the crypto industry, trailing only FTX’s $900 million raise from July. 



DCG was founded in 2015 and now has backed over 200 blockchain-related companies in more than 35 countries, in addition to the prominent companies over which it is the parent company. It is also involved in funding lobbying groups on Capitol Hill for the cryptocurrency industry.

Disclosure: At the time of writing, the author of this piece held BTC, ETH, and several other cryptocurrencies.

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Digital Currency Group Completed $600 Million Debt Capital Raise

by CryptoPotato

Grayscale’s parent company has announced that it has increased its credit facility by $600 million through a debt capital raise. The company plans to utilize the funds in order to enhance its investments in its wholly-owned subsidiaries.

  • Digital Currency Group (DCG) announced the news earlier on November 18th, indicating that Elbridge served as administrative agent of the credit facility.

  • The event also saw the participation of a syndicate of institutional lenders and funds managed by Capital Group, Davidson Kempner Capital Management, and others.

  • This is DCG’s entrance into the debt capital markets. The company intends to enhance its “strategic, operational, and financial capabilities by reducing DSG’s cost of capital and fuel the growth of its investment portfolio and wholly-owned subsidiaries” following the move.

  • Founder and CEO Barry Silbert believes the debt capital raise will also strengthen the company’s ability to “respond dynamically to opportunities in the market.”


  • “This debt financing is an important milestone to ensure DSG continues to play a leading role in the financing and development of this remarkably dynamic sector.” – added the company’s CFO, Michael Kraines.

  • It’s worth noting that the firm also recently raised $700 million from Alplabet Inc’s Capital G, SoftBank, and others, and its valuation grew to $10 billion.

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Ethereum-Based Altcoin Backed by Coinbase Ventures Surges 150% in One Day, Enters Top 100 Crypto Assets by Market Cap

by Dailyhodl

An altcoin backed by Coinbase Ventures and Digital Currency Group is surging after a month of big milestones.

Ethereum-based video streaming project Livepeer (LPT) soared to a new all-time of high today of $100.99, rallying more than 152% within a 24-hour period.

Livepeer says it’s working to build “scalable and cost-effective” solutions for online video content creators.

“Livepeer is a scalable Platform as a Service for developers who want to add live or on-demand video to their project. It aims to increase the reliability of video streaming while reducing costs associated with it by up to 50x.

To achieve this Livepeer is building p2p [peer-to-peer] infrastructure that interacts through a marketplace secured by the Ethereum blockchain.”

In October, the company acquired media server MistServer, commissioned its first NFT (non-fungible token), and co-hosted COLLIDE, “the first-ever concert with live NFT minting.”

The MistServer acquisition seeks to cement Livepeer’s primary goals of being scalable, affordable, and reliable.

“Livepeer’s mission is to build the world’s open video infrastructure… Together, Livepeer and MistServer provide a disruptive infrastructure that offers a high-quality, low-cost alternative to the traditional proprietary vendors running on expensive big tech cloud platforms.”

Livepeer has garnered $31 million in funding from over a dozen investors, including crypto industry titans Coinbase Ventures and Digital Currency Group.

Livepeer was founded in 2017 to address the cost of bandwidth and transcoding for video on the internet. It launched on the Ethereum network in May of 2018.

The price of LPT currently sits at $88.80, and the altcoin is now the 86th-largest crypto by market cap.

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Crypto Giant Digital Currency Group Reaches $10 Billion Valuation in Latest Capital Raise

by Dailyhodl

Cryptocurrency conglomerate Digital Currency Group has raised $700 million in funding, including investments from Japanese multinational holding company SoftBank and the venture capital arm of Google’s parent company Alphabet, CapitalG.

The fundraising deal helped push valuation of the crypto conglomerate to more than $10 billion, according to CNBC.

 

Digital Currency Group’s CEO Barry Silbert says that each participating investor will add value to the conglomerate in different ways, noting that SoftBank enjoys a worldwide footprint and the “ability to turbo-charge portfolio companies,” while CapitalG “brings Alphabet and Google’s expertise in data and consumer companies”.

“We were looking for the type of backers that could be, and hopefully will be, with us on this journey for the next couple of decades.”

Silbert says that while Digital Currency Group is currently profitable and will reach revenues of over $1 billion this year, going public is not currently under consideration.

“The typical reason companies do go public or rush to go public is to address liquidity, or to raise money for acquisitions, but we don’t have those pressures. I enjoy building this as a private company.”

Some of the crypto conglomerate’s subsidiaries include digital asset manager Grayscale, cryptocurrency publication CoinDesk, as well as cryptocurrency exchange and wallet Luno.

Digital Currency Group’s crypto asset portfolio includes Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Decentraland (MANA), Filecoin (FIL), Horizen (ZEN), Livepeer (LPT) and Zcash (ZEC).

In June, Silbert made his opinion on meme coins known when he condemned Dogecoin (DOGE), saying its market cap of billions of dollars is not justified.

“It is not worth $37 billion, sorry. If the entire value of something comes from a collective belief, and not usefulness or utility, then [DOGE] is overvalued.

There’s another name for that, but I’m not going there as I know it wasn’t created for that purpose or why most people loved it early on, like me.”

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Digital Currency Group sells $700M of shares for investors to take profits

by Cointelegraph

Digital Currency Group (DCG), one of the largest companies in the cryptocurrency industry, has completed a major secondary investment round led by Japanese financial giant SoftBank.

DCG has sold $700 million worth of shares to companies like Google’s parent company, Alphabet, to bring its valuation to more than $10 billion, the company officially announced Monday.

“Proud to welcome SoftBank, CapitalG, Ribbit, GIC, Tribe and Emory to an already fantastic list of DCG shareholders. And even more proud of over 1,000 employees of DCG and our wholly-owned subsidiaries that made this happen,” DCG CEO and founder Barry Silbert said.

In a Wall Street Journal interview, Silbert emphasized that the investment wasn’t about raising capital for DCG but rather an “opportunity for some for some early investors to exit and take profits.” All the raised money went to the selling shareholders, and none of them sold their entire stake, the company said. Silbert, who owns about 40% in the firm, said that he didn’t sell any stock in the latest round.

Related: Biggest Bitcoin fund in the world could become ETF by July as GBTC nears $40B AUM

Silbert noted that the company hasn’t ruled out a potential initial public offering, but it’s “not in the plans and not being discussed right now.” LDCG has been profitable and is on track to top $1 billion in revenue for the year, the CEO said.

DCG is a major crypto industry company, known for operating Grayscale Investments, the world’s biggest digital asset manager with $50 billion under management. In mid-October, Silbert hinted that the company is making plans to convert its Bitcoin Trust into a spot-settled Bitcoin exchange-traded fund.