The Wall Street Journal reports that Alphabet's parent company, Softbank, has invested $700 million in Grayscale owner Digital Currency Group, valued at $10 billion.
According to reports, SoftBank Group International CEO Marcelo Claure described DCG shares as "basically the best asset that provides us with diverse exposure to crypto, from top to bottom."
Silbert began DCG in 2015, after initially developing SecondMarket, now owned by Nasdaq. The data firm TradeBlock and mining company Foundry are also part of DCG's operating units in addition to Grayscale, CoinDesk and Genesis. In addition to payment network Abra, brokerage eToro and crypto exchange FTX, it has invested in more than 200 other companies.
SoftBank led the fundraising through its Vision Fund 2 and Latin America Fund; GIC Capital and Alphabet's Capital G joined the Japanese investment group in the raise.
DCG's founder and CEO, Barry Silbert, told the Wall Street Journal that the company's share sale allowed early investors to exit their positions. In addition, he said that the company does not intend to go public. This isn't just in the works, it's not even on the table.
DCG's latest raise continues what has already been a record-breaking year for crypto funds.
For example, cryptocurrency exchange FTX raised over $420 million last month, increasing its valuation to $25 billion.
For the third quarter of this year, crypto companies raised a record-breaking $6.5 billion, breaking the previous record of $5.13 billion. Polychain Capital, Animoca Brands, and Coinbase Ventures were the most active investors in Q3.