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Cryptocurrency conglomerate Digital Currency Group (DCG) has started to sell shares of its Grayscale cryptocurrency funds at a significant discount, according to U.S. securities filings cited in a Financial Times report on Tuesday.
See related article: Digital Currency Group’s crypto brokerage Genesis Global Capital files for bankruptcy
Fast facts
- DCG has reportedly begun offloading its investment vehicles run by its subsidiary Grayscale Investments, the operator of the Grayscale Bitcoin Trust.
- SoftBank-backed DCG has been raising funds to support the bankruptcy of subsidiary Genesis Global Holdco and its lending unit, Genesis Global Capital.
- Genesis Global Holdco, Genesis Global Trading and Genesis Global Capital filed for Chapter 11 bankruptcy on Jan. 20 after a months-long withdrawal freeze in its lending services that began in the aftermath of the collapse of Bahamas-based exchange FTX and Singapore-based hedge fund Three Arrows Capital. Genesis’ aggregated liabilities as of Jan. 20, were worth US$1 billion to US$10 billion to more than 100,000 creditors, according to its bankruptcy filings.
- In addition to Genesis and Grayscale, DCG owns the crypto-focused news outlet CoinDesk, digital asset mining and staking financing and advisory company Foundry Digital, and cryptocurrency company Luno.
- To raise funds for Genesis, DCG has begun selling shares in its asset management business The asset manager oversees large pools of Bitcoin, Ether, and other cryptocurrencies where investors can buy shares.
- According to the Financial Times, 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.
- The company is reportedly selling each share at a price of about US$8, a 50% discount for the US$16 Ether share.
See related article: DCG writes to shareholders to detail finances amid US$900 mln Twitter feud with Winklevoss