{"id":31743,"date":"2020-11-13T17:15:06","date_gmt":"2020-11-13T15:15:06","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=31743"},"modified":"2025-08-28T05:13:08","modified_gmt":"2025-08-28T02:13:08","slug":"messari-dcg-could-be-valued-at-4-3-billion-on-ipo","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/messari-dcg-could-be-valued-at-4-3-billion-on-ipo\/","title":{"rendered":"Messari: DCG could be valued at $4.3 billion on IPO"},"content":{"rendered":"<p>Barry Silbert&#8217;s Digital Currency Group (DCG) can be valued at $4.3 billion by applying the price\/revenue multiple of comparable companies and the sum-of-parts method. That&#8217;s how much the company could be worth on its IPO, according to Messari analyst Jack Purdy.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p dir=\"ltr\" lang=\"en\">And finally adding in a (conservative) estimate of their liquid+VC portfolio from numbers released in prior reports<\/p>\n<p>We come up with around $4.3 billion for the combined entity <a href=\"https:\/\/t.co\/SCKIq6I80P\">https:\/\/t.co\/SCKIq6I80P<\/a><\/p>\n<p>\u2014 Jack Purdy (@jpurd17) <a href=\"https:\/\/twitter.com\/jpurd17\/status\/1326924292014084100?ref_src=twsrc%5Etfw\">November 12, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p>&#8220;An IPO of Digital Currency Group could serve as the <a href=\"https:\/\/ru.wikipedia.org\/wiki\/Netscape_Navigator\" target=\"_blank\" rel=\"noopener noreferrer\">Netscape<\/a>-effect for the industry. One high-profile stock offering could launch a wave of subsequent IPOs. It would feed investor frenzy as they seek access to the forming and rapidly growing sector,&#8221; Purdy said.<\/p>\n<\/blockquote>\n<p>The expert noted that the group includes the asset manager Grayscale Investments, the prime broker Genesis, the CoinDesk publication, and <a href=\"https:\/\/u1f987.com\/en\/news\/digital-currency-group-buys-cryptocurrency-exchange-luno\">acquired<\/a> in September the cryptocurrency exchange Luno. These assets generate annual revenue of $243 million.<\/p>\n<p>$159 million of the $243 million goes to Grayscale. Purdy derived these figures by using assets under management of $7.6 billion.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p dir=\"ltr\" lang=\"en\">Using financial information from quarterly reports\/other public sources to come up with an estimated revenue of each of their business lines\u2026 <a href=\"https:\/\/t.co\/obgqFGG9mo\">pic.twitter.com\/obgqFGG9mo<\/a><\/p>\n<p>\u2014 Jack Purdy (@jpurd17) <a href=\"https:\/\/twitter.com\/jpurd17\/status\/1326924285647196163?ref_src=twsrc%5Etfw\">November 12, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>To obtain relevant price-to-revenue multiples, the analyst drew on valuations of fintechs Square and Robinhood, as well as peers in the same sectors as the DCG components.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p dir=\"ltr\" lang=\"en\">Then looking at two different valuation approaches: viewing DCG as a fintech co or valuing each of the LOBs separately <a href=\"https:\/\/t.co\/V1pWjFBbjU\">pic.twitter.com\/V1pWjFBbjU<\/a><\/p>\n<p>\u2014 Jack Purdy (@jpurd17) <a href=\"https:\/\/twitter.com\/jpurd17\/status\/1326924290105749505?ref_src=twsrc%5Etfw\">November 12, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Purdy then derived the business valuation by multiplying the revenue figures of the DCG segments by the previously obtained valuation multiples.<\/p>\n<p>To the $2.25\u20133.52 billion range he added a conservative valuation of the company\u2019s liquid assets (cryptocurrencies) and arrived at the sought-after $4.3 billion.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">In the next bull run, all eyes will be on the first major IPO in crypto.<\/p>\n<p>The valuation fetched will be of monumental importance acting as a bellwether for all subsequent offerings.<\/p>\n<p>In the latest \u2014 I take a stab at valuing one of crypto\u2019s giants <a href=\"https:\/\/twitter.com\/DCGco?ref_src=twsrc%5Etfw\">@DCGco<\/a> <a href=\"https:\/\/t.co\/6joekpLVQh\">pic.twitter.com\/6joekpLVQh<\/a><\/p>\n<p>\u2014 Jack Purdy (@jpurd17) <a href=\"https:\/\/twitter.com\/jpurd17\/status\/1326924282065281026?ref_src=twsrc%5Etfw\">November 12, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The Purdy valuation does not include the <a href=\"https:\/\/u1f987.com\/en\/news\/digital-currency-groups-barry-silbert-enters-bitcoin-mining\">acquired<\/a> mining company Foundry in August. In total, DCG has invested in more than 160 companies worldwide. Investments planned for 2021 are estimated at $100 million.<\/p>\n<p>In September, Genesis <a href=\"https:\/\/u1f987.com\/en\/news\/genesis-part-of-barry-silberts-crypto-empire-launches-custody-service\">announced<\/a> the launch of a cryptocurrency custody service aimed at qualified investors.<\/p>\n<p>Subscribe to ForkLog&#8217;s channel on <a href=\"https:\/\/www.youtube.com\/channel\/UCC9FnXTC8_ENzaNSO5cHQ6g\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"> YouTube<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Barry Silbert&#8217;s Digital Currency Group (DCG) could be valued at $4.3 billion by applying the price-to-revenue multiple of peers and the sum-of-the-parts method. That is how much the company could be worth on its IPO, according to Messari analyst Jack Purdy.<\/p>\n","protected":false},"author":1,"featured_media":31744,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[184,1468,1211],"class_list":["post-31743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-dcg","tag-messari","tag-stock-market"],"aioseo_notices":[],"amp_enabled":true,"views":"14","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/31743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=31743"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/31743\/revisions"}],"predecessor-version":[{"id":31745,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/31743\/revisions\/31745"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/31744"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=31743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=31743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=31743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}