DCG CEO Barry Silbert addresses shareholders for speculation

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On January 10th, DCG CEO Barry Silbert reflected on the state of the crypto industry and the increasing waves of speculation about his company in the wake of the FTX case and infection.

Silbert admitted that 2022 was a hard year and DCG and his subsidiaries were not immune to the effects of current turbulence.

In a veiled stitch to the critics, he added that it was a challenge.

"It was a challenge to question my integrity and my good intentions after I had spent a decade to put everything in this company and the room, with a relentless focus on doing things right."

I have quite thought about the past year, the condition of the industry and the further development.

Here is an update to address these considerations, other developments and some speculations about it

- Barry Silbert (@Barrysilbert) 10. January 2023

DCG under fire

The Digital Currency Group has recently been in the spotlight because it is the parent company of the competitive crypto credit company Genesis. It is also the parent company of Grayscale, the world's largest crypto asset fund manager.

Genesis suspended and repayment of loans in mid-November, which led to problems with the Gemini exchange, which had $ 900 million of outstanding loans.

At the beginning of this month, Cameron Winklevoss, co -founder of Gemini, Silbert provided an ultimatum to pay the debts. On January 10, Winklevoss asked Silbert as CEO and claimed that he was not ready to find a solution.

In his own letter, Silbert said DCG owl genesis capital $ 447.5 million and $ 4,550 BTC (worth around $ 78 million), which would be due in May 2023. Between January and May 2022, DCG lent $ 500 million to interest rates of 10 % to 12 %.

In terms of the relationship with FTX, he said that DCG made a small capital investment of $ 250,000 in series B of the no longer existing stock exchange in July 2021.

"DCG maintained a trading account at FTX with less than 1 % of our entire trade volume, which was processed on this platform," he continued.

gray level exposure

DCG also has shares in Grayscales Bitcoin Trust (GBTC), and that is exactly what observers unsettled. According to a report by the Financial Times on November 24, DCG has bought GBTC worth $ 722 million since March 2021.

In addition, the investment was financed by Genesis loans. The BTC Trust of Grayscale is currently being traded with a discount of -38.5 %. Silbert came to the conclusion that the company is still up to date with its loan repayments.

"DCG has not made any loans from Genesis Capital since May 2022, has never missed an interest payment and is up to date with all outstanding loans."

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