Digital Currency Group (DCG), the parent company behind Grayscale investments and Coindesk has raised the second largest funding in crypto history with a $700 million raise. The funding round was only second to FTX crypto exchange’s mammoth $900 million raise earlier this year. The latest funding round set DCG’s valuation at $10 billion, making it one of the richest crypto companies.
*Crypto Conglomerate Digital Currency Group Raises $700 Million in Investment Round at $10 Billion Valuation
*Digital Currency Group Investment Round Is Second-Largest in Crypto Sector
*Digital Currency Group Owns CoinDesk, Grayscale, Genesis
— *Walter Bloomberg (@DeItaone) November 1, 2021
The funding round was led by Softbank and saw participation from Google’s Capital G and Ribbit Capital as they try to gain more crypto market exposure beyond Bitcoin. DCG’s latest funding round came out of the blue given the firm has only raised $25 million since its inception six years ago.
“We’re the best proxy for investing in this industry,” Barry Sibert, founder and CEO of Digital Currency Group, 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.”
DCG’s crypto custody venture Grayscale, the world’s largest digital custody service provider is also looking to convert its premier Bitcoin offering into an ETF. The Bitcoin trust fund is currently valued at around $50 billion.
Crypto Funding Continues to Soar Through the Sky
2021 hasn’t been just the year for the crypto market, it has been even more prominent for crypto companies as they have raised billions in funding in the first three quarters of 2021. Several crypto startups have attained a unicorn status as well and the size of funding rounds has also increased by nearly 10X.
Until 2021, $100 million funding rounds topped the list but FTX crypto exchange changed it all with a mammoth $900 million raise. FTX raised another $420 million in October to attain a $25 billion valuation, making it one of the most valuable private crypto exchanges.