"It's a pity but other companies were also affected when the crypto market fell."
Cryptocurrency conglomerate Digital Currency Group (DCG) has reportedly lost $1.1 billion after struggling with falling digital asset prices and the restructuring of lending platform Genesis.
According to DCG in its fourth quarter investment report, Bitcoin (BTC) and other cryptocurrencies saw a drastic price drop when Genesis filed a $1.2 billion claim against Three Arrows Capital (TAC).
It is reported that DCG has total assets of $5.3 billion, of which cash and cash equivalents are $262 million while investment assets, tokens, Grayscale trust shares*, venture investments including funds amount to $670 million.
*Investment institutions are specially established to collect funds from investors who have small capital but are interested in investing in the stock and equity markets
While the rest consists of assets held by the Grayscale and Foundry divisions, a DCG spokesperson commented, adding their Q4 revenue was $143 million with a loss of around $24 million.
Meanwhile, DCG has an equity valuation of $2.2 billion or a price per share of $27.93 which is generally down 75% to 85%.
Despite facing challenges last year, the company managed to achieve its success in restructuring Genesis which is a subsidiary of DCG.
The $1.1 billion restructuring by DCG will be released in 2032 in exchange for creditors Genesis Capital.
It is common knowledge that negotiating the transaction documents and getting a vote on the restructuring plan is expected to take several months.
