150 total views
Struggling cryptocurrency exchange and lending company Genesis Global has lent about $2.8 billion to various crypto companies, including large loans to its parent company, the Group. Barry Silbert’s digital currency (DCG).
Genesis Global “helps” companies in the same industry despite difficulties
Loans outstanding on Genesis’ balance sheet also include intercompany loans, such as a loan from its subsidiary Genesis Global Capital to crypto brokerage Genesis Global Trading. The second subsidiary is a key player in the crypto industry, acting as an important partner of many of the largest crypto companies.
The news was reported by Bloomberg on Tuesday, with the article citing people “familiar with the matter”.
The report also cites an email from Digital Currency Group CEO Barry Silbert to shareholders in which Silbert revealed that DCG owes Genesis $575 million, with payments due in May 2018. 2023.
The Mail further describes the so-called promissory note that Genesis owes DCG for $1.1 billion, due in June 2032. The loan is said to have been set up when DCG took on some of its debt. Genesis following the collapse of crypto hedge fund Three Arrows Capital in early July of this year.
Media reports at the time indicated that Genesis had exposure to Three Arrows Capital and struggling crypto lender Babel Finance worth “hundreds of millions” of dollars.
Genesis Global Capital halted buybacks for clients on November 16, sending shockwaves across the industry and markets.
CEO Silbert: “We will become stronger”
In addition to the loans mentioned above, DCG’s sole debt is a line of credit of $350 million “from a small group of lenders led by [công ty đầu tư mạo hiểm] Eldridge is at the top,” reads an email from Silbert.
“Let me be clear: DCG will continue to be the industry’s leading builder, and we are committed to our long-term mission of advancing the development of a better financial system,” he said. We have weathered previous crypto winters and while this winter may feel more severe, collectively we will get through it stronger,” Silbert wrote. indicates that DCG is on track to hit a respectable $800 million in revenue this year.
Digital Currency Group (DCG) is a large cryptocurrency corporation with investments in dozens of crypto-related companies, including well-known companies such as Chainalysis, bitFlyer, BitPay, Blockstream, Ledger, Ripple , Coinbase, eToro and Kraken, etc.
#Genesis #billion #outstanding #loans #parent #company #DCG #significant #loan