• Digital Currency Group (DCG) has sold some of its Grayscale crypto trust shares to raise around $22 million.
• DCG is reportedly facing financial difficulties due to the bankruptcy of its trading arm, Genesis, and owes over $3 billion to creditors.
• The firm has been selling assets from its $500 million portfolio, including CoinDesk and Grayscale shares.
Digital Currency Group Sells Grayscale Shares
Digital Currency Group (DCG) has sold some of its Grayscale crypto trust shares in order to raise funds for their subsidiary, Genesis. This sale raised approximately $22 million, according to the Financial Times.
The firm is currently experiencing financial difficulty due to the bankruptcy of its trading arm-Genesis. DCG reportedly owes over $3 billion to creditors, including about $900 million owed to Gemini Earn users.
In order to raise more funds for Genesis‘ bankruptcy, DCG has been selling assets from its $500 portfolio — including CoinDesk and Ethereum trust shares at a price of $8 per share. They have also submitted filings with the US Securities and Exchange Commission (SEC).
Decline in Share Price
The share price for Ethereum trust shares has declined by over 50% since it was initially set at $16 per ETH. DCG also sold smaller shares in Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust and Digital Large Cap Fund.
DCG’s decision to sell some of their Grayscale crypto trusts shows that they are looking for ways to raise money in order to cover debts owed by their subsidiary Genesis following its bankruptcy filing. It remains unclear if this will be enough for them to cover all their debts or if they may need further assistance in the future.