Connecticut-based cryptocurrency giant Digital Currency Group (DCG) reported on Monday a loss of $1.1 billion in 2022 due to a decline in cryptocurrency prices and the restructuring of Genesisits lending platform.
What Happened: According to the company’s fourth-quarter investor report, the Three Arrows Capital (3AC) default also had an impact on Genesis, Coindesk reported.
DCG held total assets of $5.3 billion as of Dec. 31, 2022, with cash and cash equivalents of just $262 million.
DCG’s fourth quarter revenues were $143 million, with losses of $24 million, and consolidated revenues for the full year were $719 million.
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Despite the losses, DCG claims to have hit a “milestone” in the restructuring of Genesis and reached a nonbinding term sheet agreement with some of the main creditors.
This includes the extension of DCG’s May 2023 obligations to Genesis Capital to June 2024, as well as the restructuring of DCG’s $1.1 billion promissory note due in 2032.
In exchange, a new class of DCG redeemable, convertible preferred stock will be issued to Genesis Capital creditors.
The negotiation of definitive transaction documents and solicitation of votes on a reorganization plan is expected to take several months.
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