Seeking Alpha
2023-02-07 15:30:02

Crypto conglomerate DCG starts selling shares in some Grayscale trusts - report

Cryptocurrency conglomerate Digital Currency Group has started offloading shares in a number of trusts operated by its subsidiary Grayscale Investments at a deep discount, the Financial Times reported Tuesday, citing U.S. securities filings. The sales come as DCG seeks to raise funds to repay creditors of its bankrupt lending business Genesis. In mid-January, DCG was said to have explored selling some of the illiquid assets in its venture capital portfolio, which consists of 200 crypto-related projects in at least 35 countries. Grayscale runs the $10B-plus Grayscale Bitcoin Trust ( OTC:GBTC ), which reached a record discount to net asset value of nearly 50% late last year in the face of bitcoin's ( BTC-USD ) sizable drawdown. DCG has focused on selling shares in the Grayscale Ethereum Fund ( OTCQX:ETHE ), the FT noted , where the group has sold down about a quarter of its stock to raise as much as $22M in several trades since Jan. 24. With many major cryptos erasing their losses since the collapse of crypto exchange FTX ( FTT-USD ) in November 2022, GBTC and ETHE have climbed 45% and 54% , respectively, since the start of 2023. The trusts are changing hands at depressed levels from a year ago, though, in the wake of a broader market downturn. On Monday, DCG and Genesis reportedly reached a deal on the terms of a restructuring plan with a group of the firm's primary creditors.

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