Major crypto conglomerate Digital Currency Group (DCG) reported $180 million in revenue for the first quarter and the departure of a key executive.
In a letter to shareholders seen by CoinDesk on Tuesday, DCG disclosed that its Chief Financial Officer Michael Kraines stepped down in April.
The resignation follows a $1.1 billion loss recorded by the firm in 2022 on the back of declining crypto prices and restructuring the bankrupt lending arm of its subsidiary Genesis. However, improved momentum in the crypto market resulted in DCG’s first quarter revenue hitting $180 million, up 63% from the previous quarter.
According to the firm, DCG. President Mark Murphy and Chief Strategy Officer Simon Koster will be running the finance department in the interim. The firm has also engaged executive search consulting services from Heidrick & Struggles to find a replacement for Kraines, who assumed his role in March 2021.
DCG delivered another piece of news in the shareholder letter, which will likely be well-received by market participants. The firm said that it had fully repaid a $350 million senior secured term loan in the first quarter.
The revelation comes amid fears that DCG could default on a $630 million debt obligation to Genesis that falls due in the second week of May. Earlier this week, DCG, Genesis and key creditors in the lending firm’s bankruptcy proceedings agreed to a 30-day mediation process to arrive at a resolution at the earliest possible time.
Genesis petitioned a U.S. Bankruptcy court for a mediator last week after a subset of creditors reportedly reneged on the terms that were previously agreed upon in a deal finalized in February.
According to an update from Gemini, one of Genesis’ major creditors, the mediation will be narrowly focused on DCG’s economic contribution to the bankruptcy estate. Genesis’ creditor committee presented revised terms to DCG based on an ongoing investigation on various intercompany loans and transactions between the crypto conglomerate and its bankrupt subsidiary.