Financial Times Announced! Critical Move from Digital Currency Group (DCG)!

Digital assets holding Digital Currency Group (DCG) sells its shares in valuable investments at a low price to pay creditors.

Digital Currency Group Sells Shares in Grayscale Crypto Funds to Raise Funds

Crypto conglomerate Digital Currency Group has begun selling its stake in several of its most valuable cryptocurrency funds at a hefty discount as it seeks to raise capital to pay back the creditors of its bankrupt lending arm.

SoftBank-backed DCG has begun divesting assets in various investment vehicles managed by its subsidiary, Grayscale, according to US securities filings seen by the Financial Times.

Founded in 2015 by former banker Barry Silbert, Connecticut-based DCG is one of the largest and oldest investors in cryptocurrencies and businesses. SoftBank is backed by investors such as Singapore’s sovereign wealth fund GIC and Alphabet’s venture arm CapitalG.

Grayscale, DCG’s asset management business, generates hundreds of millions of dollars annually to manage large pools of Bitcoin, Ether, and other cryptocurrencies in funds where investors can purchase shares from brokerage accounts.

DCG is selling shares in one of its largest funds, even though shares have fallen significantly over the past two years relative to the fundamental value of the cryptocurrency they hold.

According to the filings, DCG’s recent share sale has resulted in the group moving to sell about a quarter of its stock to raise as much as $22 million in several transactions since Jan. Ethereum focused on the background.

The company is selling at around $8 per share, despite claims that each share is worth $16 in Ethereum.

*Not investment advice.