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Digital Currency Group (DCG), the parent company of Grayscale, recently announced an increase in revenue in the fourth quarter (Q4) of 2023, reaching the amount of 210 million dollars.
This means that it has recorded a significant increase of 59% compared to the corresponding period of the previous year. Let’s see all the details below.
Summary
Grayscale: DCG celebrates a significant increase in revenue in the last quarter (Q4) of 2023
As anticipated, Digital Currency Group (DCG) has informed shareholders that the company’s revenues reached $210 million in the fourth quarter (Q4) of last year, highlighting a 59% increase compared to the same period of the previous year.
Owner of Grayscale Investments, the company mainly attributed the increase in revenue to the rise in asset prices, particularly for Bitcoin.
In the same communication, DCG reported that the EBITDA for the fourth quarter rose to 99 million dollars, compared to the negative value of 7 million dollars recorded in the same period of 2022.
The letter to shareholders also revealed that for the fiscal year 2023, DCG’s consolidated revenues reached $749 million, with an EBITDA of $275 million.
As of December 31, 2023, DCG’s investment portfolio, which includes tokens, Grayscale trust shares, venture/fund investments, and public stocks, has reached approximately 975 million dollars.
Despite the recent decrease in assets under management in Grayscale’s Bitcoin spot ETF, the fund retains the title of the largest of its kind and manages over a third of the daily trading volumes of Bitcoin spot ETFs.
Digital Currency Group Investigation: alleged $3 billion fraud
After a thorough investigation, the Attorney General of New York, Letitia James, has expanded the lawsuit against Digital Currency Group (DCG), tripling the estimated size of the alleged fraud to over 3 billion dollars.
The investigation focuses on the lending program of cryptocurrencies Gemini Earn.
After initially focusing on the losses of investors participating in the Gemini Earn program, the NYAG has stated that an additional $2 billion has been lost.
By involving other investors who have directly contributed to DCG’s affiliate, Genesis.
The investigation has led to new accusations against Gemini, Genesis, and DCG, revealing a fraud that involves over 230,000 investors for over 3 billion dollars.
The Attorney General James stated that the fraud was so extensive that many other people have come forward to report similar damages.
A spokesperson for DCG has rejected the accusations, stating that the company and its CEO, Barry Silbert, will be fully vindicated.
DCG and Grayscale’s Opposition to Genesis’ Bankruptcy Move
DCG and Grayscale have recently expressed their opposition to Genesis’ decision to sell its assets.
We see that these include Bitcoin Trust, Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG), with a total value of about $1.6 billion, according to recent court documents.
In its presentation to the court, Grayscale emphasized its unwillingness to redeem shares without notice, as it was not informed of this move and was not an authorized participant in such operation.
Trust shares, considered “restricted securities”, cannot be transferred without the written consent of Grayscale, which may be granted or denied at its discretion.
Grayscale argued that complying with Genesis’ request could jeopardize compliance with federal securities laws. Therefore, it respectfully asked the Court to reject the part of the motion that seeks to limit its consent rights.
DCG has contested Genesis’ reasons for selling the assets, defining them as meritless.
The DCG lawyers have emphasized the uncertainty regarding the modified plan of the debtors and have advised to delay the sale of assets until the conclusion of the hearing.
Otherwise, the DCG has suggested the appointment of a specialized intermediary to manage the sale of assets, with the importance of preliminary consultations before any transfer.
The comparison between the two companies and Genesis takes place in a complex context, with Grayscale and DCG defending their interests and concerns related to regulatory compliance and responsible management of digital assets.