By Hannah Lang
– Enterprise capital firm Digital Foreign money Group, which owns Genesis Buying and selling and cryptocurrency asset supervisor Grayscale, owes $575 million to Genesis’ crypto lending arm, Chief Government Barry Silbert mentioned in a letter to shareholders on Tuesday afternoon.
Loans from Genesis International Capital, which suspended buyer withdrawals final week, have been used to “fund funding alternatives” and repurchase inventory from non-employee shareholders, Silbert mentioned within the letter, which was seen by Reuters. That debt is due in Might 2023, he added.
Except for the cash owed to Genesis, Digital Foreign money Group’s solely debt is a $350 million credit score facility from “a small group of lenders” led by funding agency Eldridge, in addition to a $1.2 billion declare it filed in July in opposition to bankrupt crypto hedge fund Three Arrows Capital. Digital Foreign money Group (DCG) had assumed that legal responsibility from Genesis.
DCG continues to be on tempo to do $800 million in income this yr, Silbert mentioned.
In suspending redemptions and pausing new loans, Genesis International Capital cited the “unprecedented market turmoil” that rippled by the market after crypto trade FTX filed for chapter. On the time, DCG mentioned the halted withdrawals at Genesis had no impression on its operations or subsidiaries.
Silbert additionally informed shareholders he appreciated phrases of help “together with gives to put money into DCG“ and that he would notify traders if the corporate decides to do a funding spherical. Genesis is looking for to boost as a lot as $1 billion, and has approached crypto trade Binance and asset supervisor Apollo International Administration for help, the Wall Road Journal reported on Monday.
(This story has been corrected to say that Digital Foreign money Group owes Genesis Buying and selling’s crypto lending arm, not the opposite method round, in paragraph 1)
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