Major crypto conglomerate Digital Currency Group (DCG) recorded more than a billion dollars-worth of losses last year.
According to a Monday report from CoinDesk, DCG lost $1.1 billion in 2022 on the back of a declining crypto market and a default from now-defunct hedge fund Three Arrows Capital.
In its fourth-quarter investor report reviewed by the publication, DCG reported $5.3 billion in total assets as of Dec. 31, 2022. Grayscale trust shares and venture investments made up $670 million of this figure, while cash and cash equivalents amounted to $262 million.
The firm reported revenue of $143 million in Q4, with $24 million in losses. Its equity valuation stands at $2.2 billion, tantamount to a price of $27.93 per share.
“This appraisal is generally consistent with the sector’s 75%-85% decline in equity values over the same period,” stated DCG in the report.
DCG’s crypto lending subsidiary Genesis filed for Chapter 11 bankruptcy protection in January, weeks after it halted withdrawals and new loan originations. The crypto lender had suspended withdrawals after it cited “unprecedented market turmoil” following the collapse of crypto exchange FTX.
Genesis was also embroiled in a public conflict with Gemini over $900 million it owed to users of the firm’s crypto yield-generating Earn product. Gemini co-founder Cameron Winklevoss took to Twitter to call out DCG CEO Barry Silbert for allegedly using “bad faith stall tactics” regarding the issue.
After months of uncertainty, DCG and Genesis arrived at a preliminary agreement with its creditors to meet Genesis’ debt obligations. It involves Genesis winding down its loan portfolio and refinancing assets, with the help of DCG, to provide $500 million in cash and $100 million in Bitcoin. Gemini has also agreed to put up $100 million in additional funds for Earn users.