December 8, 2023

Digital Currency Group lost $1.1 billion in 2022

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Digital Currency Group lost $1.1 billion in 2022

Cryptocurrency conglomerate Digital Currency Group (DCG) reported its 2022 results. The report called the year “challenging” and the company posted a total loss of $1.1 billion.

DCG includes several companies,including cryptocurrency publication CoinDesk and lending platform Genesis. It was the restructuring of the latter that became one of the main reasons for such significant losses of the conglomerate. 

At the end of 2022, the volume of assets inDCG's disposal reached $5.3 billion, while the volume of cash and cash equivalents amounted to only $262 million. Investment assets, which include tokens, shares of Grayscale funds, venture and stock investments amounted to $670 million.

“In addition to the negative impact of the fallprices of Bitcoin and other assets, last year’s results reflect the impact of Three Arrows Capital’s default on Genesis,” the report emphasizes.

Interestingly, DCG's capitalization is only $2.2 billion. Analysts believe that this estimate coincides with the average decline in the stock price of cryptocurrency companies by 75%-85% over the same period.

It was previously reported that DCG was selling at a significant discount some of the most liquid assets managed by Grayscale in order to meet its obligations.