• Digital Currency Group (DCG) reported a $1.1 billion loss for 2022, according to its fourth quarter report.
• The losses were attributed to the crypto market crash and a major default on Genesis, DCG’s lending platform.
• DCG had $5.3 billion in total assets as of 31 December 2022 with cash and cash equivalents totaling $262 million.
Digital Currency Group Reports Losses
Digital Currency Group (DCG) recently reported a $1.1 billion loss for the 2022 financial year, according to its fourth quarter report. The losses were attributed to the crypto market crash combined with a major default on Genesis, DCG’s lending platform.
Total Assets of DCG
As of 31 December 2022, DCG held $5.3 billion in total assets with cash and cash equivalents totaling $262 million. This included investment assets such as held tokens, venture investments and Grayscale trust shares amounting to just $670 million. For Q4, the venture capital firm reported revenues of just $143 million while losses reached $24 million for that period alone; resulting in consolidated revenue of only $719 million for the entire year of 2022.
Subsidiaries Owned by DCG
Digital Currency Group is the parent company of multiple subsidiaries such as Grayscale Investments, Luno, Foundry Services, Genesis Trading, TradeBlock and CoinDesk which are all also facing troubles due to crypto winter effects at present time.
Major Default on Lending Platform
The major default experienced by DCG was from Three Arrows Capital (3AC), a crypto hedge fund who filed for bankruptcy in January this year which had an adverse effect on their balance sheet significantly due to their involvement with Genesis – the lending platform owned by DCG itself.
Conclusion
In conclusion it is safe to say that Digital Currency Group has suffered greatly this past year financially after experiencing both losses from their own subsidiaries as well as defaults from external sources that affected their balance sheets directly leading them into an overall net loss of 1 Billion Dollars for 2020-2022 fiscal years
