The Digital Currency Group posts a loss of $1.1 billion in 2022

The Digital Currency Group posts a loss of .1 billion in 2022

2022 has been a rough time for many cryptocurrency companies, including the major Digital Currency Group (DCG). This company is the parent company of Grayscale, manager of the world’s largest Bitcoin fund, and CoinDesk, a popular media company, among others. As a result of the price drop and general malaise, DCG lost a total of $1.1 billion in 2022.

dark black period

All we can say is that DCG went through a period of total darkness in 2022. Of course because of the sharp drops in Bitcoin and the rest of the market, but that was certainly not the only thing. For example, its own crypto lending platform Genesis has collapsed and is undergoing a so-called restructuring. If all goes well, it could still save Genesis from going out of business.

“In addition to the negative impact of the price decline of bitcoin and other crypto assets, last year’s results also reflect the impact of the Three Arrows Capital (TAC) bankruptcy on Genesis,” DCG said in a statement in its fourth quarter. . results for the quarter 2022.

In total, DCG had $5.3 billion in assets on its balance sheet as of December 31, 2022. This suggests that DCG is a big part of the crypto world. In that context, it’s bad that it posted a total loss of $1.1 billion in 2022.

also good news

Despite all the financial difficulties, there is also positive news for the Digital Currency Group. He speaks of “a milestone” in the restructuring of Genesis, the company’s cryptocurrency lending platform. It recently agreed an action plan for the coming period with the company’s main creditors.

Part of this agreement extends DCG’s May 2023 pledge to Genesis Capital of approximately $600 million through June 2024. It also ends DCG’s infamous $1.1 billion promissory note to Genesis Capital, according to which Genesis’ creditors Capital will receive a new class of DCG convertible preferred stock.

With that in mind, DCG is trying to keep capital on board and prevent the company from collapsing in other ways. Among other things, in the form of distribution of a new class of shares, with which creditors can contribute to a healthy future for DCG.

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Source: Btc Direct

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