The Digital Currency Group (DCG) has reportedly started selling its holdings in crypto funds managed by its subsidiary Grayscale Investments as it looks to raise capital and maintain liquidity.
According to a Financial Times report on February 7, citing US securities filings, DCG sold about a quarter of its shares in Ether to Grayscale.
ETH
pointers down
1633 USD
An existing fund is worth about $8 a share, despite each share claiming roughly double that amount in ETH.
Market price per share (in grey) versus holdings per share (in green) in Grayscale Ethereum Trust (ETHE). Source: Grayscale
It is also said to have sold small stakes in Litecoin from Grayscale
LTC
pointers down
$96.41
Bitcoin Cash
Biosafety Clearing-House
pointers down
$130
and Ethereum Classic
etc.
pointers down
$22.15
Fund-based funds as well as a large digital capital fund – which combines bitcoin
BTC
pointers down
$22,678
, ether, polygon
matic
pointers down
$1.3290
Solana
sol
pointers down
$23
and Cardano
ADA
pointers down
0.386 USD
in one box.
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When asked about the stock sales, DCG was quoted as saying that they are “just part of our ongoing portfolio rebalancing.”
Despite this statement, some observers believe that Barry Silbert’s DCG may be headed for financial conflict.
Another of its affiliates — cryptocurrency lending firm Genesis Global Capital — filed for bankruptcy on January 19 and is believed to owe creditors more than $3 billion.
DCG-owned businesses have been hit hard by the contagion from FTX’s implosion, with more than 500 employees laid off in recent weeks.
However, DCG has taken a number of steps to preserve liquidity in 2023, such as announcing to its shareholders in a letter dated Jan. 17 that it will halt quarterly dividend payments as it looks to strengthen its balance sheets.
Related: Genesis creditors expect an 80% recovery under the proposed restructuring plan
DCG also sought help from financial advisory firm Lazard to help it evaluate options for selling crypto-media outlet CoinDesk — another subsidiary of its own — after it claimed to have received offers for the outlet in excess of $200 million.
Grayscale, Genesis, and CoinDesk are among about 200 crypto-related companies in DCG’s venture capital portfolio, according to their website. DCG also owns shares in other companies, including cryptocurrency exchange Luno and advisory firm Foundry.
