DCG offloads Grayscale shares to lift capital: Report

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

In keeping with a Feb. 7 Monetary Instances report citing seen United States securities filings, DCG bought round 1 / 4 of its shares in Grayscale’s Ether (ETH)-based fund for round $8 per share, regardless of every share holding a declare to just about double that quantity in ETH.

The market worth per share (grey) vs holdings per share (inexperienced) of the Grayscale Ethereum Belief (ETHE). Supply: Grayscale

It’s additionally mentioned to have bought down small share parcels in Grayscale’s Litecoin (LTC), Bitcoin Money (BCH) and Ethereum Basic (ETC)-based trusts along with its Digital Massive Cap Fund — which mixes Bitcoin (BTC), Ether, Polygon (MATIC), Solana (SOL) and Cardano (ADA) right into a single fund.

When requested concerning the share gross sales DCG was quoted as saying that: “That is merely a part of our ongoing portfolio rebalancing.”

Regardless of the assertion, some observers consider Barry Silbert’s DCG could also be headed towards monetary strife.

One other considered one of its subsidiaries — crypto lending agency Genesis International Capital — filed for chapter on Jan. 19 and is believed to owe collectors over $3 billion.

Corporations owned by DCG have been severely affected by the contagion ensuing from FTX’s implosion, with over 500 staff laid off in latest weeks.

Nonetheless, DCG has taken quite a few steps to protect liquidity in 2023, comparable to saying to its shareholders in a Jan. 17 letter that it might be halting its quarterly dividend funds because it appears to be like to strengthen its steadiness sheets.

Associated: Genesis collectors to count on 80% restoration beneath proposed restructuring plan

DCG has additionally sought the assistance of economic advisory agency Lazard to assist it weigh up choices to promote crypto media outlet CoinDesk — one other of its subsidiaries — after it claimed to have obtained presents for the outlet exceeding $200 million.

Grayscale, Genesis, and CoinDesk are amongst some 200 crypto-related companies in DCG’s enterprise capital portfolio in line with its web site. Different corporations that DCG has fairness in embrace the crypto trade Luno and advisory agency Foundry.