Digital Currency Group (DCG) CEO Barry Silbert recently shared a letter with investors illuminating the cryptocurrency conglomerate’s web of external and intercompany loans. Among them is a newly disclosed liability of $575 million to its lending subsidiary Genesis, due by May of 2023.
DCG also owes Genesis a $1.1 billion promissory note by June 2032. The note was created to assume liabilities from Genesis related to the collapse of crypto hedge fund Three Arrows Capital (3AC) in June, while DCG attempts to recover assets from 3AC’s bankruptcy proceedings.
According to BNN Bloomberg, DCG’s remaining debt includes a $350 million lending facility “from a small group of lenders led by Eldridge,” an American holding company. In terms of revenue, DCG is expected to bring in $800 million by the end of the year, on top of $25 million in primary funding.
DCG is the parent company to numerous high-profile crypto firms including Genesis, Foundry (a Bitcoin mining firm), and Grayscale (the world’s largest Bitcoin fund). Genesis took a major blow from the fallout of crypto exchange FTX, within which the lending firm said $175 million is now trapped. The company’s lending arm has since halted withdrawals, creating additional issues for customers of Gemini Earn.