Questions have swirled around the health of Genesis and DCG since Genesis Global Capital, the lending business of Genesis Trading, temporarily suspended redemptions and new loan originations last week in the wake of FTX's collapse.
DCG gave Genesis a $140 million equity infusion after it said its derivatives business had $175 million locked up on the FTX platform.Genesis sought an emergency loan of $1 billion from investors before the suspending redemptions, The Wall Street Journal reported.
Silbert said that DCG has a liability to Genesis Global Capital of roughly $575 million, which is due in May 2023. The company also took on the debt that bankrupt Three Arrows Capital failed to pay Genesis, which was estimated to be over $1 billion. In recent days, there has been chatter about intercompany loans between Genesis Global Capital and DCG. For those unaware, in the ordinary course of business, DCG has borrowed money from Genesis Global Capital in the same vein as hundreds of crypto investment firms. These loans were always structured on an arm’s length basis and priced at prevailing market interest rates. DCG currently has a liability to Genesis Global Capital of ~$575 million, which is due in May 2023.
I bought my first bitcoin a decade ago in 2012 and made the decision that I would commit to this industry for the long term. In 2013, we founded the first BTC trading firm – Genesis – and the first BTC fund, which evolved into Grayscale, now the world’s largest digital currency asset manager. Foundry runs the largest bitcoin mining pool in the world and is building tomorrow’s decentralized infrastructure.
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