Digital Currency Group (DCG) is cutting costs and streamlining operations in order to position itself for long-term success.
CEO Barry Silbert acknowledged the current state of the market and the challenges facing the industy,
Despite these challenges, Silbert remains optimistic about the future and believes that the industry must come together to rebuild its credibility.
DCG borrowed capital from Genesis Capital, currently owing them $447.5M in USD and 4,550 BTC, which matures in May 2023.
DCG has invested a small amount of money, $250,000 in FTX as part of their strategy to invest in different exchanges worldwid
Digital Currency Group (DCG), announced in a letter to shareholders today that it will be taking steps to position the firm for long-term success by aggressively cutting costs and streamlining its operations.
In the letter, DCG’s CEO Barry Silbert acknowledged the current state of the market, which has led the company to reduce its workforce and wind down its wealth management subsidiary, HQ, which was incubated in 2020. Silbert also acknowledged the challenges facing the industry, which has seen a wave of fraud and criminal behavior that has damaged its reputation.
Despite these challenges, Silbert remains optimistic about the future, saying, “I hope this letter and the accompanying Q&A that explains other developments and addresses some of the speculation about DCG – some of which is reasonable and some that is completely baseless and false – help to clarify our position.”
Barry Silbert went on to say that the industry must come together and work collaboratively in order to rebuild its credibility and reputation and that he believes DCG will emerge from this year a stronger company than ever before.
DCG announced it is taking steps to position the firm for long-term success by cutting costs and streamlining its operations, which has led to workforce reductions and winding down its wealth management subsidiary.
DCG Borrowed Capital from Genesis Capital
DCG borrowed capital from Genesis Capital, a lending arm of Genesis. DCG currently owes Genesis Capital $447.5M in USD and 4,550 BTC, which matures in May 2023. They borrowed $500M in USD between January and May 2022 at interest rates of 10%-12% and borrowed BTC during 2021 and 2022 at a weighted average interest rate of 3.85%. DCG borrowed 14,048 BCH tokens in late 2020 and is currently paying 9% interest. They have not borrowed from Genesis Capital since May 2022, has never missed an interest payment, and is current on all loans outstanding.
According to the letter, DCG is also invested a small amount of money, $250,000 FTX as part of their strategy to invest in different exchanges worldwide, they have invested in almost two dozen exchanges, and held a trading account with FTX where less than 1% of all their trading was done.
However, Barry Silbert the CEO of DCG confirms he did not have any personal or professional relationship with Sam Bankman-Fried, the CEO of FTX.