- On January 19, Genesis Global Capital filed for bankruptcy.
- DCG ceased paying quarterly dividends in an effort to improve its balance sheets.
It has been reported that Digital Currency Group (DCG), a cryptocurrency holding company, has started selling its stake in crypto funds run by its subsidiary Grayscale Investments in an effort to raise cash and retain liquidity.
U.S. securities documents seen by the Financial Times on February 7 revealed that DCG had sold almost a quarter of its stake in Grayscale’s Ether-based fund for about $8 per share, despite each share having a claim to nearly twice that value in ETH.
Small portions of its Digital Large Cap Fund (which holds Bitcoin, Ether, Polygon, Solana, and Cardano) and Grayscale’s Litecoin, Bitcoin Cash, and Ethereum Classic-based trusts have reportedly been liquidated as well.
Improving Balance Sheets
Moreover, DCG, led by Barry Silbert, has been predicted by some to have financial difficulties in the near future. On January 19, another of its companies, Genesis Global Capital, a crypto lending business, filed for bankruptcy allegedly owing creditors over $3 billion.
Over 500 people at DCG-owned businesses have been laid off in recent weeks. As a consequence of the ripple effect of FTX’s meltdown. However, DCG has taken many measures to conserve liquidity in 2023. Including notifying its shareholders in a letter dated January 17. That it will cease paying quarterly dividends in an effort to improve its balance sheets.
After claiming to have received bids for CoinDesk, a crypto media outlet. That is also a DCG subsidiary, that exceeded $200 million. DCG has enlisted the aid of financial consulting company Lazard to help it evaluate its possibilities for selling CoinDesk.
