DCG to Repay Debts by Selling Stakes in Multiple Grayscale Investments

Digital Currency Group (DCG), backed by SoftBank, has begun selling shares in some of its most prized cryptocurrency funds at a substantial discount as part of its efforts to raise funds to repay over $3 billion to its creditors and those of its bankrupt lending unit, Genesis Global Capital.

According to reports, DCG has started selling its stakes in various investment vehicles managed by its subsidiary Grayscale. One such fund is the Grayscale Bitcoin Trust (GBTC), which is managed by Grayscale and has over $10 billion in assets under management. It traded at a record-low discount to its net asset value in late 2022.

Since January 24, DCG has sold nearly a quarter of its stock to generate $22 million through multiple trades, with a focus on the Ethereum fund. Although each share is said to hold $16 worth of Ether, the company is only selling its shares for about $8.

The decision to sell the assets at a discount reflects DCG’s financial difficulties as it strives to sustain its most profitable company while raising funds to support its defunct loan operations under crypto broker Genesis.

DCG’s asset management division, Grayscale, is a significant asset that generates hundreds of millions of dollars in yearly revenue from management fees for controlling substantial pools of cryptocurrencies like Bitcoin, Ether, and others in funds investors can invest in and purchase shares through their brokerage accounts.

Furthermore, DCG has taken steps to reduce the number of shares in its Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust, and Digital Large Cap Fund by selling smaller blocks of shares.

The parent company of Genesis Global Capital, Genesis Global Holdco LLC, filed for Chapter 11 bankruptcy protection in New York on January 20, following the impact of the crypto pandemic from last year.

If you would like to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, and Instagram.