Bitcoin and altcoin company Digital Currency Group (DCG) has reportedly started selling its holdings in crypto funds managed by its subsidiary Grayscale Investments to raise capital and maintain liquidity. Here are the details…
DCG sells assets in funds of altcoin projects
cryptocoin.com As we have also reported, DCG had started the sale, according to a February 7 report of the Financial Times that referred to the United States securities filings. Now, certainty has emerged as to exactly which of these funds are. DCG has sold about a quarter of its stake in Grayscale’s Ethereum-based fund for around $8 per share. However, each share is claimed to have nearly doubled that amount in ETH.
In addition to the Digital Large Cap Fund, which combines Bitcoin (BTC), Ethereum (ETH), Polygon (MATIC), Solana (SOL), and Cardano (ADA) into a single fund, Grayscale’s Litecoin, Bitcoin Cash and Ethereum Classic-based trusts It is said that he also sold his small shares. When asked about stock sales, DCG cited the move as “a step towards portfolio balancing.” Cryptocurrency market, DCG is in question
Despite this statement, some observers believe that Barry Silbert’s DCG may be headed towards a financially contested run. Another of its subsidiaries – crypto lending firm Genesis Global Capital – filed for bankruptcy on Jan. He is believed to owed over $3 billion to creditors. Barry Silbert’s crypto holding is starting to sort out his finances. Digital Currency Group (DCG) and its leading subsidiary, Genesis, have agreed in principle with the firm’s major creditors for a restructuring plan. The deal will include a series of sales and stock offers aimed at easing the holding’s obligations.
DCG’s subsidiaries are in trouble
Companies owned by DCG have been severely hit by the collapse from FTX’s explosion, with more than 500 job cuts in recent weeks. But DCG has taken a number of steps to maintain liquidity in 2023: for example, announcing to shareholders on January 17 that it will stop paying quarterly dividends to strengthen their balance sheets.
After DCG claimed to have received bids in excess of $200 million, it also sought help from financial advisory firm Lazard to consider options to sell crypto media outlet CoinDesk – another subsidiary. Grayscale, Genesis, and CoinDesk are among nearly 200 crypto-related businesses in DCG’s venture capital portfolio, according to its website. DCG also has stakes in other companies, including crypto exchange Luno and consulting firm Foundry.
