DCG Is Selling Holdings in Several Grayscale Trusts: Financial Times
Grayscale operates the Grayscale Bitcoin Trust (GBTC), which has $10 billion-plus in assets under management.
Digital Currency Group (DCG) has started selling holdings in several investment vehicles run by its subsidiary and digital assets manager Grayscale at a steep discount, according to a Financial Times report citing U.S. securities filings.
Grayscale operates the Grayscale Bitcoin Trust (GBTC), which has $10 billion-plus in assets under management and was late last year trading at a record discount to net asset value, although that discount has fluctuated recently. Grayscale, Genesis and CoinDesk share the same parent company in DCG.
On Jan. 20 this year, Genesis Global Holdco LLC, the holding company of cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection in New York after being hit by the crypto contagion of 2022, which was exacerbated by the implosions of hedge fund Three Arrows Capital and crypto exchange FTX.
On Monday, CoinDesk reported that DCG and Genesis reached an agreement with a key group of creditors intending to sell its subsidiary Genesis' crypto trading business as well as its lending arm, which is restructuring through bankruptcy.
According to the FT report citing filings, DCG's recent share sales have focused on the Ethereum fund, where the group has moved to sell about a quarter of its stock to raise as much as $22 million in several trades since Jan. 24. The company is selling at about $8 per share, despite each share's claim to $16 of ether.
"This is simply part of our ongoing portfolio rebalancing," DCG told CoinDesk.
Grayscale did not respond to a CoinDesk request for comment.
A Bernstein report had earlier said saving Grayscale would come at a cost for DCG.
UPDATE (Feb. 7, 12:42 UTC): Rewrites headline to reflect sales of trusts, adds DCG comment.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.