DCG Reaches $10 Billion Valuation in Secondary Sale Led by Softbank and Capitalg
In a secondary sale, current investors sold part of their shares to new ones, valuing Digital Currency Group (DCG), a Manhattan-based crypto-focused VC conglomerate, at $10 billion. Softbank led the capital round, which included includes participation from Capitalg, Google’s investing arm. The deal resulted in the transfer of $700 million in stock.
A secondary sale was launched by Digital Currency Group (DCG), a crypto-focused corporation, in which current investors sold a portion of their shares to newcomers to the company. Softbank spearheaded the acquisition, which comprised the exchange of $700 million in shares, with Capitalg, Google’s private equity investment vehicle, taking part.
This further emphasizes DCG’s significance in today’s crypto-centric environment. With this fresh round of funding, the company’s valuation has risen to $10 billion. While the term DCG may be unfamiliar to some, it acts as the parent company for a number of major companies in the ecosystem. Grayscale, the world’s largest cryptocurrency asset management, and Genesis, a bitcoin service provider for institutions, are among them.
Barry Silbert, the founder, and CEO of DCG, said :
In our business, we’re the finest proxy for investment. We were searching for backers who could be, and hopefully will be, with us over the next couple of decades on our adventure.
DCG will remain a private company
While several major crypto firms, such as Coinbase, have lately gone public, DCG does not appear to be interested in doing so, at least for the time being. According to Silbert:
Companies often go public or rush to go public in order to address liquidity or raise money for acquisitions, but we don’t have such constraints. As a private corporation, I like developing it.
Silbert does not rule out an IPO, although it is unlikely at this time because DCG has no liquidity issues. In fact, the firm is on target to generate more than $1 billion in revenue this year alone.
David Lawee, the creator of Capitalg, indicated that this was an investment to take advantage of the freedom that the cryptocurrency world, and specifically DCG, offers. DCG, according to Lawee, has the ability to adapt to new crypto trends and be relevant in the market for a long time.