DCG Sells Grayscale Shares at a Steep Discount, Will Genesis Rise From Bankruptcy?

• As reported by Financial Times, DCG is trying to pay back Genesis creditors by selling Grayscale stocks.
• DCG has mainly been offloading shares from Grayscale’s Ethereum fund, which has reportedly brought in as much as US$22 million since Jan. 24. 

DCG Sells Grayscale Assets to Pay Back Genesis Creditors

Digital Currency Group (DCG) is reportedly selling the assets of its subsidiary Grayscale to pay back creditors of its lending unit Genesis.

DCG has sold about a quarter of its Ethereum Trust to raise $22 million. The company is also selling shares in its Bitcoin Trust, Litecoin Trust, Bitcoin Cash Trust, and Ethereum Classic Trust.

The sales are part of DCG’s efforts to preserve liquidity and repay more than $3 billion to Genesis creditors. Genesis filed for Chapter 11 bankruptcy last month after a liquidity crisis from its exposure to failed hedge fund Three Arrows Capital (3AC) and crypto exchange FTX.

DCG has also taken other steps to preserve liquidity, such as halting its quarterly dividend payments and seeking the help of financial advisory firm Lazard to sell crypto media outlet CoinDesk.

The sales of Grayscale assets are a sign of the financial challenges facing the crypto industry. The industry has been hit hard by the recent decline in the price of Bitcoin and other cryptocurrencies.