Thursday, Digital Currency Group (DCG) announced that it obtained USD 600 million in a new line of credit, with which it debuts in the debt capital markets. The debt financing round was led by the private equity firm, Eldridge.
The company declared that the collection, which provides to DCG a line of credit that you can use when you need it, “improves DCG’s strategic, operational and financial capabilities” by reducing your cost of capital and boosting the development of your investment portfolio and the companies you own.
Another US $ 600m for @LunoGlobal parentco @DCGco to help us upgrade the world to a better financial system. Let’s go! https://t.co/awiAWjX3kL
– Marcus (@marcswane) November 18, 2021
Another $ 600 million for Luno Global’s parent company, Digital Currency Group, to help us upgrade the world towards a better financial system. Let’s go!
Davidson Kempner Capital Management, Francisco Partners and Capital Group were some of the participants of the round. The company intends to use the capital injection to grow its investment portfolio and property operations, according to DCG.
The Digital Currency Group is a major player in the cryptocurrency space. Grayscale Investment, led by DCG, manages more than $ 50 billion in assets. In mid-October, DCG chief Barry Silbert stated that the firm is considering transitioning to a cash-settled ETF.
The raise comes two weeks after DCG made a $ 700 million stock sale led by a pair of SoftBank funds. The sale raised the value of the company to $ 10 billion. In an interview in the Wall Street Journal, Adam Silbert stated that the investment was not intended to raise money for DCG, but was “an opportunity for early investors to come out and take a profit.” The company claimed that all the capital raised was paid to the selling shareholders, and that none of them sold their entire stake.
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