On Thursday, the Digital Currency Group (DCG) announced that it had taken out a new $ 600 million line of credit and was making its debut in the debt capital markets. The debt financing round was led by private equity firm Eldridge.
The company claims that the increase, provided DCG with a loan enables DCG to “improve the strategic, operational and financial capabilities of DCG” when needed by lowering its cost of capital and accelerating the growth of its portfolio and assets.
– Marcus (@marcswane) November 18, 2021
Davidson Kempner Funds Management, Francisco Companions and Money Team were among the investors in the round. According to DCG, the company intends to use the new cash flow to expand its portfolio and wholly owned operations.
The digital currency team is a major player in the crypto space. Grayscale Investment Decision, operated by DCG, has more than $ 50 billion under management. In mid-October, DCG’s director Barry Silbert announced that the company was considering converting to an ETF with immediate settlement.
Related: Grayscale Parent Company Expands GBTC Purchase Allocation to $ 1 Billion
The price hike comes two weeks after DCG sold $ 700 million of shares held by two SoftBank funds. The acquisition increased the company’s value to $ 10 billion. In an interview with the Wall Street Journal, Adam Silbert said the investment was not intended to raise money for DCG, but “an opportunity for investors to get out early and take profits.” The company claims that all of the money raised was paid out to the shareholders who sold the shares, none of which sold all of their shares.