venture capital firm Digital Currency Group(DCG) stopped paying dividends to preserve liquidity.
While FTX filed for bankruptcy, Genesis FTX approximately $175 million was squeezed in, resulting in DCG sending an emergency capital infusion of $140 million to Genesis to address its liquidity issues. Genesis’ problems first came to light on November 16, when it stopped client withdrawals, citing unprecedented market turmoil in the wake of FTX’s collapse, which resulted in abnormal levels of withdrawals. The venture capital firm is taking new steps to meet the challenges.
DCG Will Not Distribute Dividends To Maintain Liquidity
A venture capital firm with stakes in over 200 crypto projects Digital Currency Groupsaid it stopped paying quarterly dividends as it sought to maintain liquidity.
The letter sent to the shareholders on 17 January read:
“The firm is focused on strengthening our balance sheet by reducing operating expenses and maintaining liquidity.”
Subsidiary crypto broker who reportedly owes more than $3 billion to creditors with financial problems Genesis Global Trading due to the troubles of In addition, DCG is considering selling some assets in its portfolio.
