Crypto conglomerate Digital Currency Group (DCG) has reportedly begun selling its stake in a crypto fund managed by subsidiary Grayscale Investments to raise capital and preserve liquidity.
DCG has sold about a quarter of its stake in Grayscale’s Ether (ETH)-based fund for about $8 a share, according to a February 7 Financial Times report. This is despite the fact that each share held about twice as much ETH as it did.
We also have a digital large cap fund that combines Bitcoin (BTC), Ether, Polygon (MATIC), Solana (SOL) and Cardano (ADA) into one fund, as well as grayscale Litecoin (LTC) and Bitcoin Cash. (BCH) and Ethereum Classic (ETC) have also sold their stakes in the fund.
When asked about the sale, DCG said, “This is simply part of an ongoing portfolio rebalancing.”
Also, one of DCG’s subsidiaries, crypto lending firm Genesis Global Capital, filed for bankruptcy on Jan. 19 and is believed to owes more than $3 billion to its creditors.
Companies under the DCG umbrella have been hit hard by the FTX bankruptcy, with more than 500 employees laid off in recent weeks.
However, DCG has taken various steps to ensure liquidity in 2023 and strengthen its balance sheet, including announcing to shareholders that it will stop paying quarterly dividends.
