Barry Silbert, CEO of Digital Currency Group
Barry Silbertthe boss of Digital currency groupsaid his group would also oppose this new crypto winter. According to NYTits subsidiary Genesis global capital hired the bank Moelis to discover various options including the possibility of declare bankruptcy.
In a recent letter, the founder and CEO of Digital Currency Group (DCG) tried the shareholders on the financial health of his group while Genesis global capitalthe lending unit of its subsidiary Genesis, is facing significant difficulties following the collapse of FTX.
Yesterday, Bloomberg reported that Genesiswhich reportedly previously unsuccessfully attempted to secure a $1 billion credit facility before pausing repayments on its service, was still seeking fundraising to get our heads above water. The crypto broker, which in turn indicated that it does not intend to file for bankruptcy “in the short term”, is said to have been in talks with Binance and Apollo Global Management in particular.
We have weathered previous crypto winters and while this one may seem harsher, collectively we will emerge stronger,” said Barry Silbert in his letter to shareholders.
The crypto billionaire subsequently returned to the suspension of redemptions from Genesis Global Capitalwhich particularly affected France’s Coinhouse, citing that it was a “problem of a mismatch of liquidity and maturity in Genesis’ loan portfolio”, specifying that this was ” no effect about other Genesis activities.
“Genesis management and the board of directors have decided to hire financial and legal advisors and the company is looking into this all possible options amid the fallout from the FTX implosion,” he added.
According to the New York TimesGenesis Global Capital partners with the investment bank Moelis to explore different options including possibility of going bankrupt.
“In recent days there have been discussions about the intercompany loans between Genesis Global Capital and DCG. For those who don’t know, in the normal course of business, DCG has borrowed money from Genesis Global Capital in the same vein as hundreds of crypto investment firms. DCG currently owes Genesis Global Capital approximately $575 million, which matures in May 2023,” said Silbert.
Considered one of the largest brokers in the industry, Genesis has been providing exchange, lending and custody services to institutional investors since 2013. In 2021, the company, owned by DCG, issued for $131 billion in loans. The conglomerate Digital currency groupwhich also owns Coindesk, Grayscale and Luno, raised $700 million at the end of 2021 at a valuation of $10 billion.
We appreciate words of encouragement and support, as well as offers of investments in DCG. We’ll let you know if we decide to do a fundraiser. Despite the challenging industry conditions, I am more excited than ever about the potential of cryptocurrencies and blockchain technology in the coming decades and DCG is determined to stay ahead of the game,” concludes Silbert.
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