Eldrige leads Digital Currency Group’s first $600 million debt financing round

On Thursday, the Digital Currency Group (DCG) announced that it had raised $600 million in a new credit facility, making its debut in the debt capital markets. The debt financing round was led by private equity firm Eldridge.

The company said the increase, which provides The DCG, endowed with a credit facility allowing it to draw according to its needs, “reinforces the strategic, operational and financial capacities of the DCG” by lowering its cost of capital and by stimulating the development of its investment portfolio and fully owned businesses.

Davidson Kempner Capital Management, Francisco Partners and Capital Group were among the investors in the round. The company intends to use the new cash injection to grow its investment portfolio and wholly-owned businesses, according to DCG.

The Digital Currency Group is a major player in the field of cryptography. Grayscale Investment, which is managed by DCG, manages over $50 billion in assets. In mid-October, DCG chief Barry Silbert said the company was considering switching to a cash-settled ETF.

Related: Parent Company Grayscale Extends GBTC Purchase Allocation to $1B

The increase comes two weeks after DCG sold $700 million worth of shares led by a pair of SoftBank funds. The sale brought 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 funds for DCG, but rather “an opportunity for early investors to get out and take profits.” The company claimed that all money raised went to selling shareholders, with none of them selling their entire stake.

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