Cryptocurrency markets on tenterhooks as Digital Currency Group … – Proactive Investors UK

wp header logo 129.png

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping us understand which sections of the website you find most interesting and useful. See our Cookie Policy for more information.
Strictly Necessary and Functional
These cookies are used to deliver our website and content. Strictly necessary cookies relate to our hosting environment, and functional cookies are used to facilitate social logins, social sharing and rich-media content embeds.
Advertising Cookies collect information about your browsing habits such as the pages you visit and links you follow. These audience insights are used to make our website more relevant.
Performance Cookies collect anonymous information designed to help us improve the site and respond to the needs of our audiences. We use this information to make our site faster, more relevant and improve the navigation for all users.
Pharma & Biotech
Battery Metals
Pharma & Biotech
Battery Metals
11:22 Wed 18 Jan 2023
Follow William on:
Amati Global Investors chief on his musical roots and how his collaborative approach has bred success

The hits keep coming for cryptocurrency giant Digital Currency Group (DCG), owner of Grayscale Investments, the Genesis lending platform and CoinDesk, as well as stakeholder in hundreds of crypto-related companies across the globe.
Amid a US$900mln legal spat with Winklevoss Twin-owned crypto broker Gemini and a struggle to retain control over its US$13.5bn Grayscale Bitcoin Trust (GBTC), DCG head Barry Silbert has made the executive decision to halt dividend payments to the firm’s shareholders.
“In response to the current market environment, DCG has been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity. As such, we have made the decision to suspend DCG’s quarterly dividend distribution until further notice,” DCG told shareholders on Tuesday.
Although Silbert has moved to allay concerns over DCG’s financial position, it is hard to put a positive spin on current developments in the company.
Not only has its subsidiary Genesis, at one point the largest crypto lender in the business, had to halt customer withdrawals in order to fend off a bank run, as well as cut 30% of its staff, but it now faces a lawsuit from the Securities and Exchange Commission (SEC) alleging securities law violations.
GBTC shares, meanwhile, remain at a near 40% discount to the trusts’ underlying bitcoin holdings, and its manager Michael Sonnenshein is now facing calls to step down from DCG’s controlling shareholder Osprey Funds.
With a severe liquidity crunch coming from all directions, bankruptcy rumours have inevitably emerged for DCG, although Silbert has yet to utter the B word in shareholder correspondence.
Perhaps surprisingly, the cryptocurrency markets have shrugged off DCG’s dividend renege, despite the implications for the market in the event of the firm’s implosion being huge.
DCG has over US$13bn in bitcoin tied up in GBTC alone, while its investment portfolio comprises nearly 300 companies.
The collapse of Three Arrows Capital in May 2022 showed what can happen when a major cryptocurrency firm goes under, while FTX’s collapse drove the point home.
With the future of DCG in the balance, there could be volatile times ahead for bitcoin and the crypto markets as a whole.
Add related topics to MyProactive
Proactive Investors Australia Pty Ltd ACN 132 787 654 (the Company, we or us) provides you with access to the content set out above, including any news, quotes, information, data, text, reports, ratings, opinions,…
Create your account: sign up and get ahead on news and events
Ilika PLC (AIM:IKA, OTCQX:ILIKF) CEO Graeme Purdy speaks to Proactive's Thomas Warner about how the company is performing at the beginning of the new year. Purdy reveals why he believes Ilika starts the year "on the front foot" before giving the highlights from a half-year report out this…
Prev article
Next article
Only registered members can use this feature.
© Proactive Group Holdings Inc, 2023
Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom” is registered in England with the Company Registration number 05639690. Group VAT registration number 872070825. You can contact us here.
Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use.


Leave a Reply

Your email address will not be published. Required fields are marked *