Digital Currency Group obtains $600M through its first debt capital initiative

Digital Currency Group, the parent company of Grayscale, has announced the expansion of its credit facility through a $600 million debt capital raise. The funds will be used to support the growth of the firm’s investment portfolio.

Funds to boost the firm’s growth

Digital Currency Group noted that the funds in question would be invested in boosting the growth of the company’s wholly-owned subsidiaries. Moreover, it will be the first time that this firm is venturing into the debt capital markets.

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During the announcement, the firm stated that the funds would be used to boost the “strategic, operational, and financial capabilities.” This move will reduce the cost of capital for Digital Currency Group and expand its investment portfolio.

The founder and CEO of Digital Currency Group, Barry Silbert, stated that the debt capital raise would enhance the company’s ability to tap into the immense opportunities available in the market. As such, the funds would allow the firm to “respond dynamically” to opportunities as they arise.

The CFO of the firm, Michael Kraines, also commented on this debt capital raise, noting that the funding round was a notable milestone for the firm and would help develop the firm. “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.”

Firm receives investment support

In an announcement issued on November 18, the firm noted that Elbridge would function as an administrative agent of the credit offer. The announcement further stated that the credit facility had attracted the attention of several investors.

The event leading up to raising the $600 million was supported by a wide range of institutional lenders and funds, including Capital Group, Davidson Kempner Capital Management and more.

Digital Currency Group is the parent company of Grayscale asset management firm, one of the leading digital asset custodians globally. The firm recently secured $700 million in a funding round supported by Softbank and other forms. Following this funding round, its valuation increased to $10 billion.

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