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HomeEthereumDCG Broadcasts Letter To Shareholders, Owes $447.5M in USD And 4,550 BTC...

DCG Broadcasts Letter To Shareholders, Owes $447.5M in USD And 4,550 BTC To Genesis Capital


  • Digital Foreign money Group (DCG) is slicing prices and streamlining operations with the intention to place itself for long-term success.
  • CEO Barry Silbert acknowledged the present state of the market and the challenges dealing with the industy,
  • Regardless of these challenges, Silbert stays optimistic in regards to the future and believes that the business should come collectively to rebuild its credibility.
  • DCG borrowed capital from Genesis Capital, at the moment owing them $447.5M in USD and 4,550 BTC, which matures in Could 2023.
  • DCG has invested a small sum of money, $250,000 in FTX as a part of their technique to put money into completely different exchanges worldwid

Digital Foreign money Group (DCG), introduced in a letter to shareholders immediately that it will likely be taking steps to place the agency for long-term success by aggressively slicing prices and streamlining its operations.

Within the letter, DCG’s CEO Barry Silbert acknowledged the present state of the market, which has led the corporate to scale back its workforce and wind down its wealth administration subsidiary, HQ, which was incubated in 2020. Silbert additionally acknowledged the challenges dealing with the business, which has seen a wave of fraud and prison habits that has broken its status.

Regardless of these challenges, Silbert stays optimistic in regards to the future, saying, “I hope this letter and the accompanying Q&A that explains different developments and addresses a few of the hypothesis about DCG – a few of which is cheap and a few that’s fully baseless and false – assist to make clear our place.”

He went on to say that the business should come collectively and work collaboratively with the intention to rebuild its credibility and status and that he believes DCG will emerge from this yr a stronger firm than ever earlier than.

DCG introduced it’s taking steps to place the agency for long-term success by slicing prices and streamlining its operations, which has led to workforce reductions and winding down its wealth administration subsidiary.

DCG borrowed capital from Genesis Capital, a lending arm of Genesis. DCG at the moment owes Genesis Capital $447.5M in USD and 4,550 BTC, which matures in Could 2023. They borrowed $500M in USD between January and Could 2022 at rates of interest of 10%-12% and borrowed BTC throughout 2021 and 2022 at a weighted common rate of interest of three.85%. DCG borrowed 14,048 BCH tokens in late 2020 and is at the moment paying 9% curiosity. They haven’t borrowed from Genesis Capital since Could 2022, has by no means missed an curiosity cost, and is present on all loans excellent.

In accordance with the letter, DCG can be invested a small sum of money, $250,000 in one other firm known as FTX as a part of their technique to put money into completely different exchanges worldwide, they’ve invested in nearly two dozen exchanges, and held a buying and selling account with FTX the place lower than 1% of all their buying and selling was completed.

Nevertheless, Barry Silbert the CEO of DCG confirms he didn’t have any private or skilled relationship with Sam Bankman-Fried, the CEO of FTX.

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