Barry Silbert’s Digital Currency Group (DCG) has raised $600 million in debt financing. The administrative agent of the credit line was the investment firm Eldridge.
Thus, the borrowed capital came from Davidson Kempner Capital Management, Capital Group, Francisco Partners and other institutional lenders.
The Boston-based company Goodwin Procter acted as the legal adviser of the transaction, and the New York investment bank Ducera Partners provided financial advice.
Entering the debt capital market
According to a press release, the deal “DCG’s strategic, operational, and financial capabilities by reducing DCG’s cost of capital and fueling the growth of its investment portfolio and wholly-owned subsidiaries”. The company entered the debt capital market for the first time.
DCG founder and CEO, Barry Silbert, believes this funding will strengthen their ability to respond dynamically to market opportunities.
“We are 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,” he said.
Giving a wide range of opportunities to work with crypto
Recall that previously in November, DCG’s existing shareholders held a private sale of $700 million worth of securities. During the event, the company value reached $10 billion. The group’s capital includes CapitalG (an investment company managed by Alphabet Inc), SoftBank funds (Vision Fund 2 and Latin America Fund) and Ribbit Capital.
In addition, according to the WSJ, SoftBank Chief Executive Officer Marcelo Claure described DCG as “the single-best asset that gives us a wide range of opportunities to work with cryptocurrencies.”
DCG is the parent company of a number of well-known cryptocurrency brands. Its valuation has been a mystery up until now; as it had only raised $25 million in basic capital since its inception. Moreover, the group includes Grayscale Investments management company, Genesis prime broker; CoinDesk publication, Luno, which was absorbed in September 2020, and Foundry mining company.