DCG taps debt markets for $600 million through credit facility

Capital Markets • November 18, 2021, 8:46AM EST

UPDATED: November 18, 2021, 10:58AM EST

Digital Currency Group (DCG) announced Thursday the completion of a $600 million debt capital deal led by private equity firm Eldridge.

According to a press release released on November 18, the deal, which provides DCG with a credit facility from which the firm can draw as needed, "enhances DCG’s strategic, operational, and financial capabilities by reducing DCG’s cost of capital and fueling the growth of its investment portfolio and wholly-owned subsidiaries," the company said.

Capital Group, Davidson Kempner Capital Management, and Francisco Partners participated in the deal.

DCG also plans to use the fresh capital influx to finance the growth of its investment portfolio as well as the company’s wholly-owned subsidiaries. The crypto investment firm is the parent company of Grayscale Investments, the largest crypto asset manager with over $50 billion in assets under management.

Thursday’s announcement marks the company’s maiden foray into the debt capital market.

The debt capital deal comes barely a fortnight after the company secured a $10 billion valuation after conducting a secondary investment round that included backers like SoftBank Group.

About Author

Osato is a news reporter at The Block as part of the crypto ecosystems team that focuses on DAO governance, staking, blockchain layers, and DeFi. He was previously a news reporter at Cointelegraph. Based in Lagos, Nigeria, he enjoys crosswords, poker, and attempting to beat his Scrabble high score. Follow him on Twitter at @OsatoNomayo.