Digital Currency Group CEO Barry Silbert downplays FTX impact on Genesis, expects $800M revenue in 2022

1 year ago

Digital Currency Group (DCG) CEO Barry Silbert sent shareholders a memo connected Nov. 22 addressing the concern surrounding Genesis’ liquidity.
Silbert said the suspension of withdrawals astatine Genesis’ lending limb Genesis Global Capital was an “issue of liquidity and duration mismatch successful the Genesis indebtedness book”
The CEO noted that these issues person “no impact” connected Genesis’ spot and derivatives trading oregon custody businesses.
Genesis has hired fiscal and ineligible advisers to look astatine “all imaginable options amidst the fallout from the implosion of FTX”
DCG has a liability to Genesis Global Capital of astir $575 million, owed May 2023. The wealth was borrowed “in the mean people of business,” according to Silbert
The institution besides has a $1.1 cardinal promissory enactment owed successful June 2032 owed to the presumption of liabilities from Genesis aft the default of Three Arrows Capital.
DCG’s lone different indebtedness is simply a $350 cardinal recognition facility.
Silbert explained that DCG has lone raised $25 cardinal successful superior capital.
The CEO said the institution is “pacing to bash $800 cardinal successful gross this year.”