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Genesis bankruptcy agreement imminent! DCG appoints new CFO.

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Genesis bankruptcy agreement imminent! DCG appoints new CFO.

According to a report by The Block, cryptocurrency group DCG Digital Currency Group has stated that the claims in the bankruptcy case of its lending arm Genesis Capital are close to being resolved. They have also appointed Mark Shifke, a new CFO with years of experience in mergers and acquisitions and finance.

Genesis Bankruptcy Agreement Imminent

DCG stated in a letter to investors:

After months of relentless negotiations led by DCG leadership, we are on the verge of reaching a preliminary agreement to settle the claims in the Genesis Capital bankruptcy case. It is expected that these cases will be resolved soon.

Since November last year, Gemini has faced liquidity issues due to Genesis being the lending partner for its yield product "Gemini Earn," and Genesis being affected by the closure of 3AC and FTX, which led to the suspension of withdrawals from the Earn product. Genesis subsequently filed for bankruptcy on January 19 this year.

After over six months of negotiations, Gemini co-founder Cameron Winklevoss issued a public letter and repayment plan to DCG and founder Barry Silbert in early July, followed by a formal ultimatum, and then a lawsuit.

Subsequently, WSJ reported that an investor consortium is in the final stages of a deal with cryptocurrency media company CoinDesk. CoinDesk is expected to be sold for $125 million, bringing a glimmer of hope to DCG's financial woes.

It appears that DCG may have found a silver bullet and is preparing to restructure its debts!

New CFO Mark Shifke

Furthermore, DCG's long-standing CFO vacancy has finally been filled as they have hired a new CFO, Mark Shifke. He previously served as CFO of publicly traded companies Billtrust and Green Dot and held the position of Managing Director in J.P. Morgan's M&A and Corporate Finance structure department. With nearly four decades of experience in finance, fintech, and expertise in mergers and acquisitions, Shifke is expected to bring momentum to DCG's future restructuring.

According to reports, DCG had a second-quarter EBITDA loss of $79 million, with EBITDA of $244 million excluding Genesis.

Note: EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, which better represents a company's operating performance.