Digital Currency Group Secures $600 Million Credit Facility to Fund its Operational Subsidiaries

Digital Currency Group, one of the most iconic business groups catering to the fast-growing cryptocurrency ecosystem said it has secured a $600 million credit facility, marking its grand entry into the debt market. 

According to the firm, Eldridge led and served as administrative agent of the credit facility. Amongst the companies that bankrolled the credit facility include institutional lenders and funds managed by Capital Group, Davidson Kempner Capital Management, and Francisco Partners, among others. 

Using the available credit line, the Digital Currency Group said it will be able to enhance its strategic, operational, and financial capabilities as it will be able to fuel growth at any point in time.

“This financing strengthens our ability to respond dynamically to opportunities in the market,” said DCG Founder and CEO Barry Silbert. “We’re very pleased to partner with this cohort of high-quality institutional lenders and, as a profitable and rapidly growing company, we are fortunate to be able to access this growth financing with an attractive cost of capital.”

Bankrolling Operational Subsidiaries

The Digital Currency Group serves as a parent company to a number of crypto-focused firms in the space including, Genesis, Foundry, Luno, Coindesk, TradeBlock, and Grayscale Investments which recently topped $60 billion in Assets Under Management (AUM). Each of these firms requires enough capital injection to function, and the firm said the credit facility will help it meet its obligations to these outfits.

“We’ve solidified our premier market position in recent years through the development and growth of our diversified subsidiaries, continued expansion of our investment portfolio, and via acquisitions,” said DCG CFO Michael Kraines. “This debt financing is an important milestone to ensure DCG continues to play a leading role in the financing and development of this remarkably dynamic sector.”

The credit facility succeeds a $700 million funding round the company secured through secondary share sales as reported by TheCoinRise earlier this month. With both funding campaigns, the Digital Currency Group now has enough liquidity to chart new growth paths in the fast-growing blockchain and crypto industry. 

According to the firm’s announcement, it was advised by Goodwin Procter who served as legal counsel, and Ducera Partners who served as financial advisor in connection with the debt capital raise.