HomeCryptocurrency NewsEthereumDCG offloads shares in Grayscale trusts to raise capital: Report
DCG offloads shares in Grayscale trusts to raise capital: Report
Ethereum

DCG offloads shares in Grayscale trusts to raise capital: Report

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Cryptocurrency conglomerate Digital Currency Group (DCG) has reportedly begun to promote its holdings in crypto funds managed by its subsidiary Grayscale Investments because it seems to be to boost capital and protect liquidity.

According to a Feb. 7 Financial Times report citing United States securities filings, DCG bought round 1 / 4 of its shares in Grayscale’s Ether (ETH)-based fund for round $8 per share, regardless of every share holding a declare to almost double that quantity in ETH.

The market value per share (grey) vs holdings per share (inexperienced) of the Grayscale Ethereum Trust (ETHE). Source: Grayscale

It’s additionally stated to have bought down small share parcels in Grayscale’s Litecoin (LTC), Bitcoin Cash (BCH) and Ethereum Classic (ETC)-based trusts along with its Digital Large Cap Fund — which mixes Bitcoin (BTC), Ether, Polygon (MATIC), Solana (SOL) and Cardano (ADA) in a single fund.

When requested in regards to the share gross sales, DCG was quoted as saying they’re “simply part of our ongoing portfolio rebalancing.”

Despite that statement, some observers believe Barry Silbert’s DCG may be headed toward financial strife.

Another one of its subsidiaries — crypto lending firm Genesis Global Capital — filed for bankruptcy on Jan. 19 and is believed to owe creditors over $3 billion.

Companies owned by DCG have been severely affected by the contagion resulting from FTX’s implosion, with over 500 employees laid off in recent weeks.

However, DCG has taken a number of steps to preserve liquidity in 2023, such as announcing to its shareholders in a Jan. 17 letter that it would be halting its quarterly dividend payments as it looks to strengthen its balance sheets.

Related: Genesis creditors to expect 80% recovery under proposed restructuring plan

DCG has also sought the help of financial advisory firm Lazard to help it weigh up options to sell crypto media outlet CoinDesk — another of its subsidiaries — after it claimed to have received offers for the outlet exceeding $200 million.

Grayscale, Genesis and CoinDesk are among some 200 crypto-related businesses in DCG’s venture capital portfolio, according to its website. DCG also has equity in other companies, including the crypto exchange Luno and advisory firm Foundry.