In Brief:
- DCG has raised $600 million to enter into the debt capital market.
- This financing is focused on expanding the company’s reach in the blockchain industry.
Digital Currency Group (DCG) has secured $600 million, marking its first entry into the debt capital markets. This financing is aimed to strengthen the company’s ability to respond dynamically to opportunities in the market, as Barry Silbert, DCG Founder, and CEO, said in a statement. The goal would be achieved by reducing DCG’s cost of capital and encouraging the growth of its investment portfolio and wholly-owned subsidiaries.
The raise was led by Eldridge, which also served as an administrative agent for the credit facility alongside other institutional lending firms. Additionally. Funds were managed by Davidson Kempner Capital Management, Capital Group, and Francisco Partners, among others.
DCG is a parent company of six cryptocurrency-based companies which are Grayscale, CoinDesk, Foundry, Luno, Genesis, and most recently TradeBlock. Last month, DCG endorsed the purchase of $1 billion worth of Grayscale Bitcoin shares.
Silbert expressed his excitement for this new initiative saying that the partnership with high-quality institutional lenders is very fortunate for a rapidly growing company like DCG, to be able to access this financing with an attractive cost of capital.
DCG and its subsidiaries are some of the most renowned, innovative, and active participants in the digital currency and blockchain industry. The company is associated with the most prominent investors and its subsidiaries which collectively employ more than 1,000 people globally.
“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.”
