Digital Currency Group (DCG), Grayscale’s parent company, announced first-quarter revenue of $229 million, up 11% over the prior quarter.
DCG’s first quarter revenue year over year was up 51% versus the same period last year while the price of bitcoin was up roughly 134%.
The company disclosed that Grayscale contributed $156 million to its first-quarter revenue. This amount remained relatively stable compared to the previous quarter, despite significant redemptions and a reduced management fee resulting from converting the Grayscale Bitcoin Trust (GBTC) to an ETF.
The company noted that while it anticipated outflows due to heightened competition under the ETF structure, revenue from GBTC surpassed expectations in the first quarter.
The company says, “While Grayscale expected outflows alongside increased competition under the ETF wrapper, Q1 revenue attributable to GBTC nevertheless exceeded our expectations.”
Two other notable ventures under DCG, namely the crypto mining pool Foundry and the investing platform Luno, experienced revenue growth of 35% and 46%, respectively.
Some noteworthy events occurred in the first quarter of 2024, such as the U.S. approval of Grayscale’s GBTC and spot Bitcoin ETFs and the record highs achieved by Bitcoin prices in March, as the company said. “Against this backdrop, we are pleased to showcase a strong start to the year for DCG.”
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