Digital Currency Group Valued at $10B, Raises $700 Million from Google and Others
The New York-based giant Digital Currency Group sold $700 million worth of shares in a secondary sale in a deal on Monday led by some high-profile participants such as SoftBank, Alphabet Inc’s Capital G, and Ribbit Capital.
With this, DCG becomes the latest’ decacorn in the crypto space. The secondary round, which valued the company at $10 billion, witnessed the existing investors selling shares to new backers.
DCG is not only the parent company of crypto-media platform CoinDesk but also counts prominent digital asset management firm Grayscale as well as crypto lender Genesis Trading among its subsidiaries. Up until now, its valuation was unknown.
DCG’s Ambitious Roadmap and Expansion
In an interview, DCG founder and Chief Executive Barry Silbert revealed that the latest round of investment wasn’t about securing capital. The exec further went on to add that DCG is expected to have approximately $1 billion in revenue from its wholly-owned businesses in 2021 and has been profitable every year since the very beginning.
According to the exec, the deal was a window of opportunity for some early market players to close their positions and take profits.
Besides, the company’s Chief Operating Officer Mark Murphy disclosed that the transaction helped new investors to come on board and aid in the firm’s growth with the help of their “technical and operational ability” and geographic scope.
Silbert’s Unique Business Model
With the latest round, Digital Currency Group is now one of the most valuable privately-held organizations in the crypto space. It anticipates blockchain technology to drive the rapidly evolving area of the Internet and AI-powered tech.
DCG had recently said that Silbert did not sell any stock in the offering. He reportedly owns about 40% of the company. The exec’s business model has gained significant traction.
Silbert had previously echoed that he would not cut his ownership to raise capital and has no intentions to go public. While citing the 19th-century business magnate and oil conglomerate founded by John D. Rockefeller, the exec had stated, “the model I use as inspiration is Standard Oil.”
OhNoRipple via https://www.ohnocrypto.com/ @Jordan Lyanchev, @Khareem Sudlow
