DCG Secures $600M Credit Facility

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.

This news was brought to you by Phemex, our preferred Derivatives Partner.


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Injective Raises $10 Million for Robinhood Alternative

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Decentralized derivatives trading platform Injective Protocol has raised $10 million in its latest round of funding.

Injective Raises $10 Million

Injective Protocol has raised $10 million from some of crypto’s most well-known venture capital firms, bringing its overall valuation above $1 billion. This round included contributions from Pantera Capital, BlockTower, Hashed, Cadenza Ventures, CMS, and QCP Capital.

Shark Tank host and Dallas Mavericks owner Mark Cuban, well-known for being a DeFi bull, also invested in the project.

By raising this money while giving up little equity, Injective was able to prevent dilution in ownership of the protocol and ensure that INJ holders will control the platform’s future.

An Alternative to Robinhood

Injective Protocol is a decentralized trading platform on layer 2 of Ethereum. It boasts low fees, instant transactions, and access to stocks, crypto, forex, synthetic assets, and NFTs.

The project promotes itself as a decentralized and transparent alternative to Robinhood. Some investors are now ditrustful toward Robinhood due to the GameStop shorting incident in which Robinhood faced capital shortages and began to block trades.

Because Injective cannot block trades in the same way, it could see disgruntled former Robinhood users move to its platform. Nevertheless, Robinhood is a far more mainstream app.

Disclaimer: The author held ETH, BTC, and a number of other cryptocurrencies at the time of writing.

This news was brought to you by ANKR, our preferred DeFi Partner.

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Bitcoin (BTC) $ 26,225.03 0.27%
Ethereum (ETH) $ 1,587.20 0.15%
Litecoin (LTC) $ 63.94 0.73%
Bitcoin Cash (BCH) $ 214.09 1.75%