Barry Silbert, CEO and founder of Digital Currency Group – Credit: Alamy
Digital Currency Group has been hit by a loss greater than 1 billion dollars in 2022. One year ” difficult “according to the crypto conglomerate owner of Grayscale and Genesis.
Digital Currency Group announced to its shareholders that it has recorded a loss of $1.1 billion last year, reports Coindeska media owned by DCG that operates independently.
In 2022, following the collapse of market prices and disasters such as Terra, the crypto empire led by Barry Silbert has experienced, like many major players in the industry, significant difficultiesespecially with its subsidiary Genesis.
The group’s crypto lender finally filed for Chapter 11 bankruptcy with the ambition of restructuring earlier this year. This month, it reached a deal with its major creditors, including Gemini, the Winklevoss twins’ exchange.
In addition to the negative impact of [Bitcoin] and lower crypto asset prices, last year’s results reflect the impact of Three Arrows Capital’s default on Genesis,” DCG wrote in its letter, noting it held a total of $5.3 billion in assets as of Dec. 31, 2022.
The U.S. firm also returned to the agreement reached by its subsidiary Genesis. “The agreement provides for extend the maturity of the bonds DCG’s May 2023 bonds to Genesis Capital through June 2024. It also includes the restructuring of the infamous promissory bill of $1.1 billion from DCG, due in 2032, in exchange for Genesis Capital creditors issuing a new class of redeemable and convertible DCG preferred stock,” she said.
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