Crypto Giant DCG Revealed a Loss of Over $1 Billion in 2022 (Report)

The venture capital firm focused on cryptocurrencies – Digital Currency Group (DCG) – reportedly marked a loss of $1.1 billion last year. 

Some of the primary reasons for the downfall were the collapse of the crypto market and the bankruptcy of its subsidiary – Genesis.

• DCG – a crypto conglomerate shuttered by scandals and the bear market – disclosed in a report (seen by CoinDesk) that the turbulent 2022 resulted in a $1.1 billion loss for the company.
• It pointed out Genesis’ demise (a cryptocurrency lender under its umbrella) and the decline of bitcoin as the main factors behind the losses:

“In addition to the negative impact of [bitcoin] and crypto asset price declines, last year’s results reflect the impact of the Three Arrows Capital (TAC) default upon Genesis.”

• It is worth mentioning that Genesis was not the only DCG subsidiary that experienced some issues. The London-based digital asset platform Luno recently dismissed 35% of its employees, citing “the incredibly tough year for the broader tech industry and the crypto market.”
• DCG finished Q4 2022 with a loss of $24 million, while the revenue was $143 million. Consolidated revenue for the entire year reached $719 million.
• As of the end of December 2022, DCG held total assets of $5.3 billion, only $262 million of which were cash and cash equivalents.
• The company’s equity valuation hit $2.2 billion, while shares traded at nearly $28. “This appraisal is generally consistent with the sector’s 75%-85% decline in equity values over the same period,” it stated in the report.
• Contrary to the monetary loss, DCG restructured its $1.1 billion promissory note (due in 2032) and vowed to issue a new type of redeemable, convertible preferred stocks.

The post Crypto Giant DCG Revealed a Loss of Over $1 Billion in 2022 (Report) appeared first on CryptoPotato.