DCG sells shares in grayscale trusts to lift capital: report

Cryptocurrency conglomerate Digital Forex Group (DCG) has reportedly begun promoting its holdings in crypto funds managed by its subsidiary Grayscale Investments because it seeks to lift capital and protect liquidity.

In keeping with a February 7 Monetary Instances report citing US securities filings, DCG bought round 1 / 4 of its shares in Grayscale’s Ether (ETH)-based fund for round $8 per share, to although every share was entitled to virtually double that quantity in ETH.

The market worth per share (gray) versus holdings per share (inexperienced) of Grayscale Ethereum Belief (ETHE). Fountain: grayscale

He’s additionally stated to have bought small parcels of shares in Grayscale’s Litecoin (LTC), Bitcoin Money (BCH) and Ethereum Traditional (ETC)-based trusts, along with his Digital Massive Cap Fund, which mixes Bitcoin (BTC), Ether, Polygon (MATIC), Solana (SOL) and Cardano (ADA) in a single fund.

When requested in regards to the share gross sales, DCG was quoted as saying they’re “merely a part of our ongoing portfolio rebalancing.”

Regardless of that assertion, some observers imagine Barry Silbert’s DCG could also be heading for monetary bother.

One other of its subsidiaries, crypto lending agency Genesis World Capital, filed for chapter on January 19 and is believed to owe collectors greater than $3 billion.

DCG-owned corporations have been hit laborious by the contagion stemming from the FTX implosion, with greater than 500 staff laid off in latest weeks.

Nevertheless, DCG has taken quite a lot of steps to protect liquidity in 2023, resembling asserting to shareholders in a January 17 letter that it could droop its quarterly dividend funds because it seeks to strengthen its stability sheets.

Associated: Genesis collectors anticipate 80% restoration below proposed restructuring plan

DCG additionally sought the assistance of economic advisory agency Lazard to assist it weigh choices to promote cryptocurrency outlet CoinDesk, one other of its subsidiaries, after it claimed to have acquired presents for the outlet in extra of $200 million.

Grayscale, Genesis and CoinDesk are amongst some 200 cryptocurrency-related corporations in DCG’s enterprise capital portfolio, in response to its web site. DCG additionally has shares in different corporations, together with crypto change Luno and advisory agency Foundry.