- The Financial Times reports that DCG has sold its shares in several Grayscale crypto funds, with the focus on the Ethereum fund.
- DCG is selling its shares for about $8, and each share’s claim is $16 in ether.
- DCG sold about a quarter of its shares in the Ethereum Fund, raising about $22 million.
- It is unclear if DCG has sold any of the Grayscale Bitcoin Trust (GBTC).
- DCG agreed with Gemini on Monday to pay back Genesis’ $900 million in debt to Gemini Earn users.
Digital Currency Group (DCG) He continues to look for ways to raise money to help bankrupt lending units under crypto broker Genesis.
According to a report by the Financial Times, DCG sold its shares in several Grayscale crypto funds. Grayscale is also a subsidiary of DCG. DCG sold its shares at a significant discount: about $8 a share, despite each share claiming $16 in ether.
The sale of DCG shares focused on the Ethereum fund, as the group sold about a quarter of its shares to raise about $22 million.
However, whether DCG sold any of its shares in the Grayscale Bitcoin Trust (GBTC) is also unknown. The fact that DCG, a parent of Grayscale, is a GBTC stockholder was a possible reason behind the SEC’s reluctance to approve Grayscale’s Bitcoin ETF.
At the same time, while it’s unclear how much money DCG will raise to sell the shares, the company has already found a way to pay off Genesis’ debt to twin.
DCG comes to an agreement with Gemini
DCG is actively trying to raise money to help Genesis pay off its creditors. DCG is currently looking to sell its media outlet CoinDesk. It also sold part of its cryptocurrency portfolio holdings, which amounted to about $550 million.
Genesis, which filed for Chapter 11 bankruptcy a few weeks ago, owes its creditors about $3.5 billion. This includes $900 million owed to Gemini cryptocurrency exchange users who have been waiting to get their money back since November last year.
However, Genesis seems to have found a way to pay Gemini users money. The two companies agreed on Tuesday that DCG would swap its $1.1 billion bond due in 2032 for convertible preferred stock. DCG will also refinance its existing loans due in 2023 for new loans totaling $500 million.
on the flip side
- It’s unclear how much DCG will be able to boost sales of these shares at deep discounts.
Why should you bother
The Genesis story seems to have taken a more positive turn lately. With DCG aggressively looking for ways to raise money to help Genesis, users affected by the bankruptcy could get the majority of their money back if all goes well.
