DCG offloads Grayscale shares to raise capital: Report

Cryptocurrency conglomerate Digital Currency Group (DCG) has reportedly begun to merchantability its holdings successful crypto funds managed by its subsidiary Grayscale Investments arsenic it looks to rise superior and sphere liquidity.

According to a Feb. 7 Financial Times report citing seen United States securities filings, DCG sold astir a 4th of its shares successful Grayscale’s Ether (ETH)-based money for astir $8 per share, contempt each stock holding a assertion to astir treble that magnitude successful ETH.

The marketplace terms per stock (gray) vs holdings per stock (green) of the Grayscale Ethereum Trust (ETHE). Source: Grayscale

It’s besides said to person sold down tiny stock parcels successful Grayscale’s Litecoin (LTC), Bitcoin Cash (BCH) and Ethereum Classic (ETC)-based trusts successful summation to its Digital Large Cap Fund — which combines Bitcoin (BTC), Ether, Polygon (MATIC), Solana (SOL) and Cardano (ADA) into a azygous fund.

When asked astir the stock income DCG was quoted arsenic saying that: “This is simply portion of our ongoing portfolio rebalancing.”

Despite the statement, immoderate observers judge Barry Silbert’s DCG whitethorn beryllium headed toward g fiscal strife.

Another 1 of its subsidiaries — crypto lending steadfast Genesis Global Capital — filed for bankruptcy connected Jan. 19 and is believed to owe creditors implicit $3 billion.

Companies owned by DCG person been severely affected by the contagion resulting from FTX’s implosion, with implicit 500 employees laid off successful caller weeks.

However, DCG has taken a fig of steps to sphere liquidity successful 2023, specified arsenic announcing to its shareholders successful a Jan. 17 missive that it would beryllium halting its quarterly dividend payments arsenic it looks to fortify its equilibrium sheets.

Related: Genesis creditors to expect 80% betterment nether projected restructuring plan

DCG has besides sought the assistance of fiscal advisory steadfast Lazard to assistance it measurement up options to sell crypto media outlet CoinDesk — different of its subsidiaries — aft it claimed to person received offers for the outlet exceeding $200 million.

Grayscale, Genesis, and CoinDesk are among immoderate 200 crypto-related businesses successful DCG’s task superior portfolio according to its website. Other companies that DCG has equity successful see the crypto speech Luno and advisory steadfast Foundry.