Digital Currency Group Completed $600 Million Debt Capital Raise

Grayscale’s parent company has announced that it has increased its credit facility by $600 million through a debt capital raise. The company plans to utilize the funds in order to enhance its investments in its wholly-owned subsidiaries.

• Digital Currency Group (DCG) announced the news earlier on November 18th, indicating that Elbridge served as administrative agent of the credit facility.
• The event also saw the participation of a syndicate of institutional lenders and funds managed by Capital Group, Davidson Kempner Capital Management, and others.
• This is DCG’s entrance into the debt capital markets. The company intends to enhance its “strategic, operational, and financial capabilities by reducing DSG’s cost of capital and fuel the growth of its investment portfolio and wholly-owned subsidiaries” following the move.
• Founder and CEO Barry Silbert believes the debt capital raise will also strengthen the company’s ability to “respond dynamically to opportunities in the market.”

• “This debt financing is an important milestone to ensure DSG continues to play a leading role in the financing and development of this remarkably dynamic sector.” – added the company’s CFO, Michael Kraines.

• It’s worth noting that the firm also recently raised $700 million from Alplabet Inc’s Capital G, SoftBank, and others, and its valuation grew to $10 billion.

Featured Image Courtesy of The Economist