DCG Looks to Refinance Outstanding Genesis Obligations, Raise Growth Capital

The crypto conglomerate may owe its bankrupt lending division hundreds of millions in loan payments, due in May.

AccessTimeIconMay 9, 2023 at 1:18 p.m. UTC
Updated May 9, 2023 at 3:17 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Digital Currency Group (DCG) is looking to refinance outstanding obligations with its bankrupt lending division Genesis and raise growth capital, the crypto conglomerate said on Tuesday.

Outstanding obligations can take the form of loans, receivables or any payments due between the two entities. The lending platform's bankruptcy filings from January revealed DCG's total debt to Genesis includes $575 million due this month, and a $1.1 billion promissory note due June 2032. CoinDesk reported in February that DCG, which is CoinDesk's parent company, may have borrowed around $500 million in cash and as much as $100 million worth of bitcoin (BTC) from Genesis.

The move is meant to provide "further financial flexibility" as DCG engages with stakeholders in Genesis Capital's bankruptcy proceedings, DCG said.

DCG was hit hard by the crypto market collapse last year, with its subsidiary Genesis ending up in bankruptcy court.

Parties to Genesis' bankruptcy proceedings have agreed to a 30-day mediation period to iron out the terms and conditions of DCG's contribution to the reorganization plan. DCG has said the mediation request reflected several creditors backing out of a previous agreement.

"We are committed to reaching a fair outcome for all and look forward to a productive resolution during this mediation period," the notice said.

CoinDesk has reached out to DCG for further comment.

Update (May 9, 13:33 UTC): Adds more detail on DCG's outstanding obligations to Genesis in second paragraph.

Edited by Nelson Wang.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Sandali Handagama

Sandali Handagama is CoinDesk's deputy managing editor for policy and regulations, EMEA. She does not own any crypto.

Learn more about Consensus 2024, 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.