DCG is considering selling the assets to pay Genesis’ $3 billion in debt
Digital Currency Group (DCG), the group that owns crypto broker Genesis, is said to be considering selling assets from its portfolio to pay Genesis’ $3 billion in debt.
DCG is exploring selling VC assets to raise funds
To generate new money, Digital Currency Group is exploring options as the collapse of FTX in November caught subsidiary Genesis by surprise. Accordingly, a source close to the matter confirmed that DCG is considering selling part of its venture capital portfolio, which is valued at around $500 million.
Digital Currency Group (DCG) is a venture capital firm that invests and builds companies in the digital currency and blockchain space. It was founded in 2015 by Barry Silbert and is one of the largest projects supporting early crypto projects and companies.
DCG owns a variety of companies across the digital currency and blockchain space, including CoinDesk, a leading news and analysis outlet for the crypto and blockchain sector; and Grayscale, a digital currency investment manager.
In addition, DCG has a large portfolio of venture capital, which includes investments in more than 150 companies, including well-known names such as Coinbase, Circle, Ripple and Kraken, as well as less well-known companies. According to an insider, DCG’s assets may take some time to sell.
Genesis is another victim of the FTX debacle
As a subsidiary of DCG, Genesis has been a major player in the digital asset lending market, allowing individuals to lend their coins for substantial returns. However, as a result of the market turmoil caused by the FTX crash, Genesis suspended customer withdrawals in November and attributed the decision to “unprecedented market turmoil”.
Genesis currently owes $900 million to Gemini customers, €280 million to Dutch exchange Bitvavo, and an additional amount to customers of crypto savings firm Donut. There is a separate group of Genesis creditors represented by Proskauer Rose, according to people familiar with the situation.
Genesis has sought the help of an outside party to help determine the next steps, but so far, no outside funding has been secured. DCG CEO Barry Silbert informed shareholders that in an effort to cut expenses, 30% of Genesis’ workforce has been laid off and its wealth management division has been closed.