Digital Currency Group (DCG) has started selling holdings in Grayscale

Digital Currency Group (DCG) has started selling holdings in several investment vehicles run by its subsidiary, Digital Assets Manager Grayscale, according to a Financial Times report citing US securities filings. Grayscale operates the Grayscale Bitcoin Trust (GBTC), which has over $10 billion in assets under management and was trading at a record discount to net asset value at the end of last year, although the discount has since fluctuated.

DCG is the parent company of cryptocurrency lender Genesis Global Capital and digital media outlet Coindesk. On January 20, Genesis Global Holdco LLC, the holding company of Genesis Global Capital, filed for Chapter 11 bankruptcy protection in New York, after being affected by the crypto contagion of 2022, which was made worse by the implosions of hedge fund Three Arrows Capital and crypto exchange FTX.

On Monday, Coindesk reported that DCG and Genesis had agreed with a key group of creditors to sell its subsidiary Genesis’ crypto trading business and its lending arm, which are restructuring through bankruptcy.

According to the FT report, 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 January 24. The company is selling at about $8 per share, despite each share’s claim to $16 of ether.

A Bernstein report previously said that saving Grayscale would come at a cost for Digital Currency Group. DCG and Grayscale did not respond to a Coindesk request for comment.

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