DCG CEO Barry Silbert said in a note to shareholders that the company will emerge stronger from the current crisis.
Digital Currency Group founder and CEO Silbert reassured his investors in the wake of the Genesis crisis.
Assurance from DCG CEO
“DCG will continue to be one of the industry’s leading actors,” Silbert said in a note to shareholders.
Headlines from Silbert’s note are as follows:
“Genesis Global Capital’s lending division suspended lending on Wednesday, November 16, after market turmoil led to unprecedented withdrawal requests. This has no impact on Genesis’s spot and derivatives trading and custody business, which continues to operate as usual.
The Genesis board has decided to hire financial and legal advisors. The company continues to explore all possible options as the FTX crisis continues.
Recently, there has been talk of various loan exchanges between Genesis Global Capital and DCG. DCG borrowed money from Genesis Global Capital in the same way as hundreds of crypto investment firms during its normal course of business. These loans have always been structured at arm’s length and priced at prevailing market interest rates. DCG currently owes ~$575 million to Genesis Global Capital, due in May 2023. These loans were used to finance investment opportunities and repurchase DCG shares.
We appreciate the support efforts as well as offers to invest in DCG. We will let you know if we decide to do a funding round.
Despite the difficult conditions in the industry, I am as excited as ever about the potential of cryptocurrencies and blockchain technology. DCG is determined to stay at the forefront”
DCG-owned Genesis Global Capital has hired investment bank Moelis & Company to consider options, including a potential bankruptcy, the New York Times reported. No final decision has been made on the matter.
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