Digital Currency Group (DCG) holds only $262 million in cash and cash equivalents at the end of 2022.
Digital Currency Group (DCG) whale investment fund reported a loss of $1.1 billion in 2022, as the group struggled to restructure its lending platform Genesis and the impact of the recession. shared.
According to CoinDesk – a crypto website belonging to DCG, the parent company holding a total of USD 5.3 billion in assets, as of December 31, 2022. In which, cash and equivalents are only 262 million USD. Investment assets including tokens, Grayscale Trust shares, venture capital funds account for 670 million USD. The remaining assets are mainly held by the Grayscale and Foundry divisions.
A DCG spokesperson said all investment assets and venture portfolio values have been accounted for at market value (MTM).
On the other hand, the fourth quarter revenue of the investment fund established since 2015 was 143 million USD, a loss of 24 million USD. Consolidated revenue for the whole year was about $719 million.
Meanwhile, the company’s equity value is $2.2 billion, or a price per share of $27.93. The report states:
“This appraisal is generally in line with a 75%-85% drop in the industry’s equity value over the same period.”
DCG said in its fourth-quarter report:
“In addition to the negative impact of Bitcoin and falling crypto asset prices, last year’s financial results mirror the impact of Three Arrows Capital default on Genesis.”
As Kyptos reported, Genesis is a crypto lending company that has been heavily affected by the The collapse of the FTX exchange in November 2022, forcing block withdrawals and declare bankruptcy. At that time, the company owed the 50 largest creditors an amount of up to 3.5 billion USD.
Despite last year’s challenges, earlier this month DCG announced All sides have found common ground in the reconstruction of Genesis.
Accordingly, Genesis will convert $1.1 billion in assets Digital Currency Group committed to lend by an internal commercial paper maturing in 2032 into DCG preferred shares to creditors. This commercial paper is meant to “rescue” Genesis after the company got caught up The bankruptcy of the Three Arrows Capital fund in July 2022.
In addition, DCG will extend their loan at Genesis, which is in the form of $500 million in Bitcoin and cash that matures in May 2023, into two new loans with an interest rate of 11.5% against USD. and 5% on Bitcoin, due in June 2024.