Crypto company Digital Currency Group (DCG) is in debt of over $2 billion, but its founder wants investors not to panic. However, following the sudden collapse of FTX and the disturbing details that emerged about mismanaged funds, worrying is not an overreaction at this time.
Barry Silbert, who founded Digital Currency Group, addressed investors at a meeting on Tuesday, earlier this week. He tried to boost their confidence amidst the rumours about the company’s financial situation. DCG, as the company is also known, owns two trading firms, Genesis and Grayscale Investments, and a mining company, Foundry.
Silbert said that DCG would end 2022 with a revenue of $800 million, showing its ability to overcome what he described as crypto winder. He joins other crypto founders and CEOs in strengthening faith in the digital currency economy.
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Doubts about DCG are not just a product of FTX’s failings, the Wall Street Journal had published a report about its subsidiary, Genesis, pausing some withdrawals after failing to raise a funding of $1 billion from investors. There were also reports that it Genesis could file for bankruptcy, although, the company denied it.
Yet, Genesis has indeed fired some of its legal and financial advisers in a bid to reduce operating cost. While this move is not surprising as many other tech firms have done the same, it is not particularly inspiring when it concerns a volatile market like cryptocurrency.
A large chunk of DCG debt comes from its subsidiary, Genesis, and a credit facility it provided to a group of lenders.
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