• Digital Currency Group (DCG) and its subsidiary Genesis have reached an agreement with creditors to restructure their liabilities.
• The agreement involves selling Genesis‘ bankrupt entities, refinancing loans and issuing convertible preferred stock.
• DCG has also recently sold shares in several crypto funds managed by Grayscale at a discounted rate.

Digital Currency Group Reaches Agreement With Creditors

The Digital Currency Group (DCG) and its leading subsidiary Genesis have reached an agreement in principle for a restructuring plan with the firm’s main creditors. Under the deal, DCG will exchange its $1.1 billion promissory note to Genesis for convertible preferred stock, which will be issued by the parent firm as part of the subsidiary’s bankruptcy plan. Additionally, Genesis‘ lending unit and crypto trading arm will be sold off while outstanding loans will be refinanced. Gemini, the firm’s largest creditor with an exposure of nearly $800 million, has also committed up to $100 million for Earn users as part of the agreement.

Grayscale Shares Sold at Discount

A report by Financial Times revealed that DCG had offloaded shares in several leading crypto funds managed by Grayscale at a steep discount. According to U.S securities filings seen by FT, DCG has sold its holdings in multiple investment vehicles including the Grayscale Bitcoin Trust (GBTC). The most recent share sales were focused on Grayscale’s Ethereum fund since 24 January 2021.

Interim CEO Speaks on Resolution

Genesis‘ interim CEO Derar Islim expressed gratitude towards his team for their dedication and commitment towards client service during this period of uncertainty: „I am grateful to the talented team at Genesis for their ongoing dedication and commitment to client service, and excited about working together to build Genesis for the future“. He also extended appreciation towards clients who have shown patience during this period: „I also want to express my deep appreciation to all of our clients for their continued patience and loyalty as we work through a resolution for our lending business.“

Crypto Conglomerate Sorts Out Finances

DCG has been actively sorting out its financials affairs in order to bring maximum value back into its clients’ hands and stakeholders’ pockets. The sale of assets coupled with debt refinancing is set to ease some of the conglomerate’s liabilities while still allowing it remain afloat amidst volatile market conditions.

Conclusion

The agreement between DCG & creditors is expected have positive ramifications within both parties involved as well as benefit those who participate through Earn users’ rewards programmme offered by Gemini. It remains uncertain what lies ahead but one thing stands clear – they are taking steps in right direction towards restoring health & stability within industry-leading crypto conglomerate

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