What would an IPO of the Digital Currency Group (DCG) look like? Analysts at digital analytics company Messari.io believe they have the answer.
In one report just published, the researcher Jack Purdy has started a theoretical IPO for DCG. Using data from the quarterly updates along with other publicly available information and the average value for money from similar technology companies Purdy concluded that if DCG decided to go public, it would be worth more than $ 4 billion.
The high rating is based on DCG’s careful evaluation of the underlying companies. While the most casual observer may not realize it, DCG owns some of the largest crypto companies, including Genesis, Grayscale, and Coindesk. Together, these and other DCG properties generate annual sales of $ 243 million.
In addition to its impressive top line, DCG’s investment arm has an extensive portfolio of Bitcoin, Ethereum and many other cryptocurrencies. As of June 30, 2018, the company’s portfolio of digital assets was $ 260 million.
To be honest Purdy didn’t speculate on what DCG’s stock offering would look like or how many investors would get involved. Initial public offerings or initial public offerings are rarely a scientific process given the huge financial incentives that sellers and their agents have to raise the price.
Speculation about who will go public in the world of the crypto industry has been a prevalent topic for several years, with companies like Coinbase and BlockFi routinely appearing in these conversations. Although there are several publicly traded companies involved in blockchain technology, A name like Coinbase or DCG could be the first company to focus exclusively on crypto assets and go public.
“As soon as that happens,” says Purdy, “ “It could be the Netscape moment for cryptocurrencies when a high-profile IPO triggers a series of subsequent offers, fueling investor excitement to get involved in the emerging but rapidly growing industry.”
DCG did not respond immediately to our request for comment. Although the company has not commented on a public offer, its founder and CEO did Barry Silbert was quoted as saying that he wanted to “make DCG the Berkshire Hathaway of cryptocurrencies”.
Berkshire Hathaway is a billionaire investment conglomerate Warren Buffett.