Digital Currency Group (DCG) have been selling their Grayscale Bitcoin Trust holdings (GBTC).
The once-powerful venture capital company has been selling GBTC shares to repay creditors.
Aside from selling their GBTC holdings, the company recently came to an agreement with Gemini crypto exchange to help Gemini Earn users recover their losses.
DCG sells GBTC and mends relationship with Gemini crypto exchange
Digital Currency Group has begun selling Grayscale shares at a discount to pay off their creditors and raise extra capital to sustain themselves and avoid more bankruptcies.
In order to recoup capital, DCG sold its shares in Grayscale and several other funds. The decision to sell comes after DCG’s holding company, Genesis Global filed for chapter 11 bankruptcy on January 20, 2023.
Although DCG and Genesis reached an agreement with creditors on February 6, it doesn’t necessarily mean that DCG is out of dangerous waters yet.
After crypto exchange Gemini had to freeze their Gemini Earn service due to financial woes, Gemini and DCG have also agreed on a plan for recovery that involves getting all Gemini Earn users their money back.
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As reported by Decrypt, the new deal involves $100 million being used to compensate affected Gemini Earn users and the eventual auction of Genesis Global from DCG.
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