Digital Currency Group sells part of its stake in Grayscale Bitcoin Trust

According to the Financial Times, the company led by Barry Silbert is in the process of selling its GBTC shares, despite the fact that they recently traded at an all-time high. big discount due to the bear market. The British newspaper notes that The sell-off focused on the Ethereum fund.where the group sold almost a quarter of its shares for raise up to $22 million in several operations since January 24.

The GDC is sell these shares for around $8 each, while each share entitles you to $16 worth of ethereum. (ETH). As a company spokesperson told the FT, the process is “simply as part of the ongoing rebalancing of our portfolio.”.

Grayscale takes a management fee of 2.5% on the fund’s 3 million ETH. The last time DCG sold shares of Ethereum Trust was in 2021, when the vehicle was trading near par with its net asset value, according to records provided by “The Washington Service.” She also allegedly sold shares of Litecoin, Bitcoin Cash and Ethereum Classic funds.

Its flagship bitcoin fund holds about 3% of all BTC in the world.valued at approximately $14.7 billion, on which Grayscale earns a 2% commission. In the first nine months of 2022, GBTC earned $303 million, records show.

Importantly, the GDC does not allow investors in Grayscale funds to exchange their shares for the coins held in the trusts, which would help close large gaps in net asset value.

RESTRUCTURING AGREEMENT

Separately, DCG has reached an agreement with Genesis creditors to sell the bankrupt company’s cryptocurrency trading business as well as lending arm.

Under the terms of the agreement, DCG will exchange its existing $1.1 billion promissory note due 2032 for convertible preferred stock.. It will also refinance existing term loans maturing in 2023, worth nearly $500 million, to repay creditors, who hope to get around 80% of their money back.

Additionally, DCG will contribute its shares in Genesis Trading to Genesis Global Holdco, the holding company of Genesis Capital. All Genesis companies will thus be grouped under the same holding company. Thereafter, Genesis Trading and Genesis Capital will go through a sale process in order to return the funds to creditors. DCG and Genesis Global Holding plan to emerge from bankruptcy within 4 months.

1/ Today, @Gemini entered into an agreement in principle with Genesis Global Capital, LLC (Genesis), @DCGcoand other creditors on a plan that allows Earn users to recover their assets. This agreement was announced today in the bankruptcy court.

—Cameron Winklevoss (@cameron) February 6, 2023

The exchange co-founder Geminione of the main creditors, Cameron Winklevosstweeted about the proposed deal, noting that Gemini will bring “up to $100 million more for Earn users under the plan. » restructuring plan.

It should be recalled that the Winklevosses threatened to sue Genesis and Barry Silbert for the $900 million debt acquired as a result of the Gemini Earn program.. Furthermore, the Securities and Exchange Commission (DRY(19459011]) from the United States accused the two companies of selling unregistered securities. with this product. Recently, the company announced a major round of layoffs as well as other major companies in the sector.