Digital Currency Group, a cryptocurrency conglomerate, has secured $700 million in financing, including investments from Japanese multinational holding firm SoftBank and CapitalG, the venture capital arm of Google’s parent company Alphabet.
According to CNBC, the funding agreement boosted the crypto conglomerate’s capitalization to more over $10 billion.
Each participating investor will add value to the conglomerate in different ways, says Digital Currency Group CEO Barry Silbert, who notes that SoftBank has a global footprint and the “ability to turbo-charge portfolio companies,” while CapitalG “brings Alphabet and Google’s expertise in data and consumer companies.”
“We were looking for the type of backers that could be, and hopefully will be, with us on this journey for the next couple of decades.”
Silbert claims that, although Digital Currency Group is now profitable and on track to exceed $1 billion in sales this year, going public is not currently on the agenda.
“The typical reason companies do go public or rush to go public is to address liquidity, or to raise money for acquisitions, but we don’t have those pressures. I enjoy building this as a private company.”
Among the businesses of the crypto conglomerate are digital asset management Grayscale, cryptocurrency journal CoinDesk, and cryptocurrency exchange and wallet Luno.
Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Decentraland (MANA), Filecoin (FIL), Horizen (ZEN), Livepeer (LPT), and Zcash are among the crypto assets in Digital Currency Group’s portfolio (ZEC).
In June, Silbert voiced his displeasure with joke currencies when he slammed Dogecoin (DOGE), claiming that its market valuation of billions of dollars is unjustified.
Sorry, but it is not worth $37 billion. If the whole of something’s worth stems from a common belief rather than usefulness or utility, then [DOGE] is overrated.
“It is not worth $37 billion, sorry. If the entire value of something comes from a collective belief, and not usefulness or utility, then [DOGE] is overvalued.
There’s another name for that, but I’m not going there as I know it wasn’t created for that purpose or why most people loved it early on, like me.”