Digital Currency Group (DCG), a SoftBank-backed firm, has started to sell holdings in several investment vehicles run by its subsidiary Grayscale at a steep discount. This move is part of DCG’s effort to raise funds to support its collapsed lending units under Genesis, which filed for bankruptcy protection in January 2023.
Quarter of Ethereum Fund Stock Sold
A quarter of DCG’s stock in its Ethereum fund has been sold, generating as much as $22 million in several trades since January 24, according to a report by the Financial Times. The group is selling the shares at about $8 per share, despite each share’s claim to $16 of ether.
In addition to the Ethereum fund, DCG has also sold smaller blocks of shares in its Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust, and Digital Large Cap Fund, according to the report.
Read More: Grayscale Bitcoin Trust shares fell by 50%, fear of bankruptcy increases
Grayscale Bitcoin Trust
Grayscale operates the Grayscale Bitcoin Trust (GBTC), which has more than $10 billion in assets under management. The GBTC was trading at a record discount to its net asset value last year, but the discount has fluctuated recently.
DCG and Genesis have reached an agreement with a group of creditors to sell Genesis’ crypto trading business and its lending arm, which is restructuring through bankruptcy.
In light of Genesis’ bankruptcy and the market rout that followed, DCG is taking measures to raise funds by selling shares in its crypto funds at a discount. The company is focused on selling its Ethereum fund, but has also sold shares in several other funds. Despite the recent events, DCG’s other subsidiaries, including CoinDesk and Grayscale, remain unaffected.
