DCG reported a loss of $1.1 billion last year, with most assets held in subsidiaries, and stated that Genesis reorganization achieved a milestone.

According to a report by CoinDesk, the cryptocurrency conglomerate DCG Digital Currency Group reported a loss of $1.1 billion last year. Apart from the decline in cryptocurrency asset prices, the performance last year also reflected the impact of the default of 3AC, an affiliate of Three Arrows Capital, on its subsidiary Genesis.

Loss of 1.1 Billion for the Year, Assets Mostly Held by Subsidiaries

The report states that from a balance sheet perspective, as of December 31, 2022, DCG held total assets of 5.3 billion US dollars. Of this, only 262 million US dollars were in cash and cash equivalents. Investment assets totaled 670 million US dollars, including cryptocurrencies, Grayscale Trust shares, venture capital investments, and fund investments. The majority of the remaining assets belong to subsidiaries Grayscale and Foundry. The value of all investment assets and venture capital portfolios has been calculated based on market value assessment, Mark to Market.

DCG's revenue for the fourth quarter was 143 million US dollars, with a loss of 24 million US dollars. The comprehensive revenue for the year was 719 million US dollars, with a loss of 1.1 billion US dollars.

In its annual stock valuation, DCG's stock valuation was 2.2 billion US dollars, with a price per share of 27.93 US dollars. This valuation is consistent with the industry's decline of 75%-85% during the same period.

Regarding the Bankruptcy Reorganization of Subsidiary Genesis

Despite facing challenges last year, DCG stated that it achieved a milestone in the reorganization of its subsidiary Genesis.

In early February, DCG reached a preliminary agreement with Genesis creditors (holding or representing over 2 billion US dollars in claims), where DCG will convert the 1.1 billion US dollars in 2032 maturing notes into convertible preferred stock issued by DCG. DCG will also issue new senior secured term loans to refinance its existing 2023 term loans, extending the debt maturity to June 2024, with a total value of approximately 600 million US dollars.

The report mentions that finalizing the transaction documents and voting on the restructuring plan is expected to take several months. According to previous reports, DCG has also begun selling its Grayscale assets to raise cash actively.