Cryptocurrency conglomerate Digital Currency Group (DCG) has reportedly begun to promote its holdings in crypto funds managed by its subsidiary Grayscale Investments because it seems to raise capital and protect liquidity.
According to a Feb. 7 Financial Times report citing seen United States securities filings, DCG bought round 1 / 4 of its shares in Grayscale’s Ether (ETH)-based fund for round $8 per share, regardless of every share holding a declare to practically double that quantity in ETH.
It’s additionally mentioned to have bought down small share parcels in Grayscale’s Litecoin (LTC), Bitcoin Cash (BCH) and Ethereum Classic (ETC)-based trusts as well as to its Digital Large Cap Fund — which mixes Bitcoin (BTC), Ether, Polygon (MATIC), Solana (SOL) and Cardano (ADA) right into a single fund.
When requested in regards to the share gross sales DCG was quoted as saying that: “This is simply part of our ongoing portfolio rebalancing.”
Despite the assertion, some observers consider Barry Silbert’s DCG could also be headed towards monetary strife.
Another one in every of its subsidiaries — crypto lending agency Genesis Global Capital — filed for chapter on Jan. 19 and is believed to owe collectors over $3 billion.
Companies owned by DCG have been severely affected by the contagion ensuing from FTX’s implosion, with over 500 workers laid off in current weeks.
However, DCG has taken a variety of steps to protect liquidity in 2023, resembling asserting to its shareholders in a Jan. 17 letter that it will be halting its quarterly dividend funds because it seems to strengthen its stability sheets.
Related: Genesis collectors to count on 80% restoration beneath proposed restructuring plan
DCG has additionally sought the assistance of economic advisory agency Lazard to assist it weigh up choices to promote crypto media outlet CoinDesk — one other of its subsidiaries — after it claimed to have acquired provides for the outlet exceeding $200 million.
Grayscale, Genesis, and CoinDesk are amongst some 200 crypto-related companies in DCG’s enterprise capital portfolio in accordance to its web site. Other firms that DCG has fairness in embrace the crypto alternate Luno and advisory agency Foundry.
