Grayscale Becomes Latest Crypto Company to File for IPO

Bloomberg

Watch Grayscale Becomes Latest Crypto Company to File for IPO - Bloomberg on Dailymotion

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00:00What can you tell us about the financials that Grayscale did disclose as part of this filing?

00:05So in July, they filed confidentially, which means that only the SEC and them could see their papers and their financials.

00:10But now that it's public, everyone, investors, competitors and the media could see.

00:14And we could see that net income has slid from the start of the year to September compared to last year.

00:19And revenue also slid.

00:21But we do have analysts saying that maybe it's going to stabilize soon.

00:23But as Nora mentioned, this is one of the few companies that are really tapping the public markets to go public.

00:28Under this administration, they're very permissive when it comes to digital assets.

00:32And Grayscale is one of the first movers when it comes to the crypto space.

00:35In 2013, that was when they were founded.

00:37They were an early mover when it comes to the Bitcoin and Ether fund.

00:40They converted that into an ETF.

00:42They had a legal victory two years ago.

00:44And that really paved the way for the blockbuster ETFs that we see right now for Bitcoin, Ether and more.

00:49And, of course, it's become much more than just the company that launched one of the first ways for investors to tap into the crypto market.

00:56It's trying to become like an overall financial services solution company, right?

01:00Yes, absolutely.

01:01So in the founder letter, Barry Silbert, who is the founder of Grayscale, said something like,

01:06now that crypto is more mainstream, it's not anymore pure play.

01:09It can even be side by side.

01:11But treasuries is a diversified exposure with disciplined cost management.

01:14And looking ahead, they're looking into tokenization also, whether it's private credit, private markets or real estate.

01:19That seems to be the direction of travel that everyone is going to.

01:22And they compare tokenization today to the early days of crypto before.

01:26I mean, it's hard to imagine that just a few years ago, Bitcoin was $16,000.

01:29Now it's trading just above $100,000.

01:31That's really a key milestone level that investors are seeing.

01:34But I think that this year we're seeing a lot of institutional investors pile into crypto.

01:38And this is one of the great ways that you can do that.

01:41Based on that timeline, I think they can go public as soon as December.

01:44That's what the team is saying.

01:45But who knows?

01:45With the SEC shutting down and like the government shutdown, things could be delayed.

01:49And are they mainly exposed to Bitcoin or are they kind of dabbling in all the different altcoins?

01:54All the different altcoins.

01:55So they were happy to say that they have around 40 products.

01:58They have access to 45 tokens.

01:59They have around $30 billion in asset under management.

02:02And they have 120 employees growing every day.

02:04And they're really, really just expanding.

02:07But the thing with these companies is as Bitcoin goes down, they're also affected.

02:11Nora mentioned Circle.

02:12You see Gemini.

02:12A lot of those companies move kind of in lockstep with a digital asset universe.

02:16And now it's really not a good day so far the past weeks.

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