DCG Secures $600M Credit Facility
Prices might be dropping, but it is not for lack of funding moving into the space.
- 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.