The Digital Currency Group (DCG) has completed a $700 million investment round from high-profile investors such as SoftBank Group Corp - ADR SFTBY and Alphabet Inc GOOG GOOGL.
What Happened: According to a report from The Wall Street Journal, DCG’s $700 million share sale valued the company at $10 billion. Barry Silbert, the firm’s founder and CEO, said the transaction was solely an opportunity for early investors to exit and take profits.
The entirety of the sum raised went to the selling shareholders, none of whom sold their entire stake in the company. Silbert himself did not sell any shares during the stock offering.
DCG is a heavyweight in the crypto industry with a number of highly profitable first-mover portfolio companies. Included in this list is Grayscale Investments, the issuer of the world’s largest Bitcoin BTC/USD fund, the Grayscale Bitcoin Trust GBTC.
The firm also owns the digital currency brokerage Genesis, which is on track to report $1 billion in revenue this year.
According to SoftBank CEO Marcelo Claure, it was DCG’s combination of portfolio companies that made it an attractive investment in order to get diverse exposure to crypto.
“We’re the best proxy for investing in this industry,” DCG's Silbert told CNBC in an interview.
“We were looking for the type of backers that could be, and hopefully will be with, with us on this journey for the next couple of decades.”
BTC Price Action: Bitcoin was trading at $63,386.22, gaining 3.06% in the last 24 hours, as of Tuesday morning at publication.
Photo by Viktor Jakovlev on Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
