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Last Minute: DCG CEO Made a Statement! Will the Bitcoin Decline End?

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Digital Currency Group founder and CEO Barry Silbert informed shareholders today. There is a new development in the incident that brings down crypto coins. Rumors circulating about Genesis being in a difficult situation and the suspension of withdrawals had a major negative impact on the Bitcoin price. So what are the latest developments?


Will Genesis Go Bankrupt?


Digital Currency Group founder and CEO Barry Silbert informed shareholders today and said the company will emerge stronger from the current environment, a day after media reports that the Genesis unit is facing a possible bankruptcy.

“DCG will continue to be one of the leading founders of the industry and we are committed to our long-term mission of accelerating the development of a better financial system. We have survived previous crypto winters, and although this one feels more severe, we will collectively come out of it stronger. Genesis Global Capital, Genesis’s lending business, temporarily suspended the fires and the purchase of new loans last Wednesday, November 16, after the turmoil in the market led to unprecedented withdrawal requests.

This is a problem of liquidity and maturity mismatch in the Genesis loan book. More importantly, these issues have no impact on Genesis’ spot and derivatives trading or custody businesses, which continue to operate as usual. Genesis leadership and the board of directors have decided to hire financial and legal advisers, and the firm is exploring all possible options amid the collapse caused by the explosion of FTX”.

There’s more in the details. The continuation of the letter is as follows;

“In recent days, there has been talk about intercompany loans between Genesis Global Capital and DC Dec. Dec. For those who are not aware, in the usual course of business, DCG has borrowed money from Genesis Global Capital in the same way as hundreds of crypto investment firms. These loans are always structured in accordance with their peers and priced at the prevailing market interest rates. Paid May 2023 DCG currently has a ~$575 million debt against Genesis Global Capital that is due in May 2023. These loans were used to finance investment opportunities and to repurchase DCG shares from non-employee shareholders in secondary transactions previously highlighted in quarterly shareholder updates.”

Will Bitcoin Rise?


The CEO of DCG says that the company has taken care of its 3AC obligations and that they are in a strong position to face possible difficult situations. This statement, which gives confidence to Genesis, may reduce the decline of crypto currencies at least somewhat due to Genesis. However, the need for an emergency loan of $ 500 million has not yet been resolved.

The CEO also said in the shareholder letter:;

“We appreciate the offers to invest in DCG, as well as the words of encouragement and support. We will inform you if we decide to conduct a financing round. Despite the challenging industry conditions, I am as excited as ever about the potential of cryptocurrencies and blockchain technology for decades to come, and DCG is committed to staying at the forefront.”

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