Grayscale parent Digital Currency Group raises $700 million
A factor that predicted the Bitcoin crash in 2018 suggests bullish action is ahead
Over the past few days, you’ve likely noticed a lot of buzz about a trend in the crypto space: Tether, the company behind the USDT stablecoin, has begun to issue millions upon millions of their coin.
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.”
Existing investors are selling shares to new backers. The $700 million deal was led by SoftBank and included Google’s Capital G and Ribbit Capital, among others. The investment also signals new interest by venture capital firms looking for exposure to the digital asset class outside of Bitcoin.
Capital G founder and general partner David Lawee said he saw this as a way to back a potential winner in crypto-financial services. “When I think back to the nineties, very few companies I met still exist — it’s very hard to evolve as quickly as technology evolves — you need to be a pretty nimble company to take advantage of it,” he said.
The round makes DCG one of the most valuable privately held companies in the space alongside FTX, Kraken, and Circle. The company is profitable and is on track to top $1 billion in revenue for the year, as per Silbert.
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