DCG Sells Shares in Grayscale Crypto Trusts at Steep Discount to Raise Funds for Genesis Creditors
Digital Currency Group (DCG) continues looking for ways to raise funds to help its bankrupt lending units under the crypto broker Genesis. According to a report by the Financial Times, DCG has sold its shares in several Grayscale crypto trusts. Grayscale is also DCG’s subsidiary. DCG has sold its shares at a deep discount: About $8 per share, despite each share’s claim to $16 of ether. DCG’s share selling has focused on the Ethereum fund, where the conglomerate has sold about a quarter of its stock to raise around $22 million. However, whether DCG has sold any of its shares in the Grayscale Bitcoin Trust (GBTC) is also unknown. The fact that DCG, a parent to Grayscale, is one of the holders of GBTC shares has been a potential reason why the U.S. Securities and Exchange Commission (SEC) has been reluctant to approve Grayscale’s Bitcoin ETF. At the same time, while it’s unclear how much funds DCG will raise selling the shares, the company has already found a way to repay Genesis’ debt to Gemini. DCG has been actively trying to raise funds to help Genesis repay its creditors. DCG is currently looking to sell its media outlet CoinDesk. It has also sold part of its crypto venture portfolio holdings, which amounted to around $550 million. Genesis, which filed for Chapter 11 bankruptcy a few weeks ago, owes its creditors around $3.5 billion. This includes the $900 million owed to crypto exchange Gemini’s users who’ve been waiting to get their funds back since November last year. However, Genesis seems to have found a way to repay Gemini users. The two companies agreed on Tuesday to see DCG swap its $1.1 billion note due in 2032 for convertible preferred stock. DCG will also refinance its existing loans due in 2023 for new loans of an aggregate value of $500 million. The Genesis story seems to have taken a more positive turn lately. With DCG aggressively looking at ways to raise funds to help Genesis, users affected by the bankruptcy might get back the majority of their funds if everything goes well.
DCG Reaches Agreement with Gemini
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Text source: DailyCoin.com
