Crypto Giant DCG Revealed a Loss of Over $1 Billion in 2022 (Report)

Cryptocurrency-focused venture capital firm Digital Currency Group (DCG) reportedly posted a loss of $1.1 billion last year.

Some of the main reasons for the drop were the collapse of the crypto market and the bankruptcy of its subsidiary – Genesis.

• DCG, a cryptocurrency conglomerate shut down by scandals and the bear market, revealed in a report (seen by CoinDesk) that the turbulent 2022 resulted in a loss of $1.1 billion for the company.
• he pointed death of genesis (a cryptocurrency lender under its umbrella) and the decline of bitcoin as the main factors behind the losses:

“In addition to the negative impact of [bitcoin] and falling crypto asset prices, last year’s results reflect the impact of Three Arrows Capital’s (TAC) default on Genesis.”

• It’s worth mentioning that Genesis wasn’t the only DCG subsidiary to experience some issues. London-based digital asset platform Luno recently fired 35% of its employees, citing “incredibly difficult year for the tech industry in general and the crypto market.”
• DCG ended the fourth quarter of 2022 with a loss of $24 million, while revenue was $143 million. Consolidated revenue for the full year reached $719 million.
• As of the end of December 2022, DCG had total assets of $5.3 billion, of which only $262 million was cash and cash equivalents.
• The company’s stock valuation hit $2.2 billion, while the shares traded at nearly $28. “This assessment is generally consistent with the sector’s 75% to 85% decline in equity values ​​over the same period,” he stated in the report.
• Contrary to the monetary loss, DCG restructured its $1.1 billion note (due 2032) and committed to issue a new class of redeemable convertible preferred stock.