In the investor report for the fourth quarter of its most recent fiscal year, the United States-based conglomerate of cryptocurrency-centric businesses known as Digital Currency Group (DCG) disclosed a loss of $1.1 billion the previous year. The site had difficulties as a result of the declining value of cryptocurrencies as well as the reorganization of its Genesis loan platform.
According to the research, as of the 31st of December in 2022, the DCG had accumulated assets worth around $5.3 billion. There was only a total of $262 million in cash and cash equivalents listed. Tokens, Grayscale trust shares, as well as investments made via funds and ventures, contributed to the overall worth of investment assets, which was estimated to be somewhere about $670 million. All of the other assets that were still available were controlled by the Grayscale and Foundry divisions.
In its investor report for the fourth quarter, DCG said, “In addition to the negative effect of [bitcoin] and crypto asset price reductions, last year’s results include the impact of the Three Arrows Capital (TAC) default upon Genesis.”
According to a spokesperson of DCG, all of the investment assets as well as the value of the venture portfolio have been brought up to date with the market. It is a technique for estimating the correct value of accounts whose balances change often over the course of an accounting period.
According to the study, DCG’s quarterly sales were $143 million, while the company had losses of around $24 million in the prior fiscal year. In addition, the total consolidated revenues for the whole year amounted to 719 million dollars.
Taking into account the company’s average share price of $27.93, DCG had reached a total equity value of $2.2 billion. According to what was said in the research, “this evaluation is usually consistent with the sector’s 75%-85% decrease in equity values over the same period of time.”
However, Genesis was also affected by the vortex that was produced in the cryptocurrency arena, and as a result, it went bankrupt. This happened to many other crypto enterprises. Notwithstanding this, DCG said that it had reached a significant milestone in the process of reorganizing Genesis by including a nonbinding term sheet agreement with the primary creditors.
Compiled by Coinbold