Digital Currency Group (DCG) is moving to Connecticut, and with this relocation, the company aims to generate over 300 jobs over the next five years. Barry Silbert cited the proximity to major metropolitan areas, infrastructure, talent, business-friendly environment, and facilities as the reasons behind the move.
Cryptocurrency behemoth Digital Currency Group (DCG) announced relocating to Stamford, Connecticut, from its New York headquarters. Founded by Barry Silbert in 2015, DCG has emerged as a prominent investment company in the crypto sector, having invested in over 200 blockchain platforms.
Digital Currency Group’s (DCG) Objectives
Going forward, Digital Currency Group plans on attracting new investment and creating job opportunities in Connecticut. For this purpose, it will reportedly get more than $5 million from the state contingent or the Connecticut Department of Economic and Community Development (DECD).
The official reports also stated that DCG won’t be the only one relocating. Four of its subsidiaries, such as the leading asset manager – Grayscale Investment, institutional trading platform TradeBlock, DSG Real Estate, and DSG’s new wealth management business, are also following along.
Elucidating more on why DCG chose Stamford as the new base, the CEO of the Bitcoin and blockchain tech company, Barry Silbert, stated,
“Its proximity to major metropolitan areas combined with its infrastructure, talent, business-friendly environment, and world-class facilities to house our rapidly-growing organization made it an easy choice. We are committed to making our new home in Stamford a hub for the next generation of fintech and blockchain entrepreneurs.”
DCG’s Various Tryst
The latest news comes almost a month after Digital Currency Group managed to push its valuation to $10 billion after selling shares to SoftBank and CapitalG, which happens to be Alphabet’s venture capital arm in a recent deal. With this development, DCG joined the list of the most valuable privately held companies in the crypto space alongside Brad Garlinghouse-led Ripple, crypto exchange Kraken, and stablecoin operator Circle.
While discussing a potential IPO, Silbert had said that no talks had been held over the subject. The exec had also predicted that DCG is profitable and is on course to hit a massive $1 billion mark in revenue for the year.
Shortly thereafter, the company announced the completion of a debt capital raise that offered a credit facility of almost $600 million.
Grayscale’s parent company has announced that it has increased its credit facility by $600 million through a debt capital raise. The company plans to utilize the funds in order to enhance its investments in its wholly-owned subsidiaries.
- Digital Currency Group (DCG) announced the news earlier on November 18th, indicating that Elbridge served as administrative agent of the credit facility.
- The event also saw the participation of a syndicate of institutional lenders and funds managed by Capital Group, Davidson Kempner Capital Management, and others.
- This is DCG’s entrance into the debt capital markets. The company intends to enhance its “strategic, operational, and financial capabilities by reducing DSG’s cost of capital and fuel the growth of its investment portfolio and wholly-owned subsidiaries” following the move.
- Founder and CEO Barry Silbert believes the debt capital raise will also strengthen the company’s ability to “respond dynamically to opportunities in the market.”
“This debt financing is an important milestone to ensure DSG continues to play a leading role in the financing and development of this remarkably dynamic sector.” – added the company’s CFO, Michael Kraines.
- It’s worth noting that the firm also recently raised $700 million from Alplabet Inc’s Capital G, SoftBank, and others, and its valuation grew to $10 billion.
Featured Image Courtesy of The Economist