The US-based conglomerate of cryptocurrency-centric companies, Digital Currency Group (DCG), unveiled a loss of $1.1 billion last year in its last fiscal year’s fourth-quarter investor report. The platform was impacted due to the depleting price of cryptocurrency and the restructuring of its lending platform, Genesis.
As per the report, the DCG held around $5.3 billion worth of assets up to Dec 31, 2022. It included cash and cash equivalents of just $262 million. The total valuation of investment assets stood around $670 million, which includes tokens, Grayscale trust shares, and venture and fund investments. All other remaining assets were assets held by divisions Grayscale and Foundry.
“In addition to the negative impact of [bitcoin] and crypto asset price declines, last year’s results reflect the impact of the Three Arrows Capital (TAC) default upon Genesis,” DCG said in its fourth-quarter investor report.
A representative of DCG stated that all the investment assets and the value of the venture portfolio have been marked to market. It is a method to determine the fair value of accounts that fluctuate over time.
The report states DCG’s Q4 revenues were $143 million and recorded losses of around $24 million in the last fiscal year. Furthermore, consolidated revenues for the entire year were $719 million.
DCG had accumulated an equity valuation of $2.2 billion with an average share price of $27.93. “This appraisal is generally consistent with the sector’s 75%-85% decline in equity values over the same period,” the report read.
The whirlpool generated in the crypto space drowned many crypto firms, and unfortunately, Genesis was also impacted and became bankrupt. However, DCG claimed that it has hit a milestone in the process of restructuring Genesis by enclosing a nonbinding term sheet agreement with the main creditors.
