Digital Currency Group Records $210 Million in Q4 2023 Revenue

• Approx one year ago, Genesis, a lending affiliate of DCG, sought bankruptcy protection.
• The parent business of Grayscale attributed the increase in revenue to rising asset values.

The company’s revenue reached $210M in the Q4 of 2023, a 59% rise in comparison to the same time the previous year, Digital Currency Group (DCG) said Monday in a letter to shareholders.

The parent business of Grayscale Investments attributed the increase in revenue on rising asset values, especially bitcoin. In comparison to the same time in 2022, when EBITDA was minus $7 million, DCG’s fourth-quarter number jumped to $99 million.

The company mentioned in the letter:

“For the 2023 fiscal year, DCG’s consolidated revenues were $749 million with EBITDA of $275 million.” As of December 31, 2023, DCG’s investment portfolio (including tokens, Grayscale trust shares, venture / fund investments, and public equities) was marked at [about] $975 million.”

Ongoing Litigation

Despite losing billions of dollars in AUM, Grayscale’s recently converted spot bitcoin ETF is still the biggest of its kind and processes over a third of the daily spot bitcoin ETF trading volumes, as shown by statistics.

Approximately one year ago, Genesis Global Holdco, a lending affiliate of DCG, sought bankruptcy protection. The New York Attorney General has accused DCG, Genesis, and another firm, Gemini, of defrauding over 230,000 investors of over $3 billion. The case in which the corporation is embroiled is ongoing.

A DCG spokesperson stated last week:

“There is nothing new here. This is the same baseless complaint recirculated to generate another round of press headlines.”

Recent settlement negotiations between Genesis and the Securities and Exchange Commission resulted in a $21 million payment. In an unauthorized securities offering, the Gemini Earn program managed to garner “billions of dollars’” worth of cryptocurrency from thousands of investors, according to the SEC.

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