DCG valuation tops $4.4B in 2023
The company repaid over $1 billion in debt, according to the letter
T. Schneider/Shutterstock modified by Blockworks
Digital Currency Group posted a 59% jump in year-over-year revenue, according to a quarterly shareholder letter.
The letter, shared with Blockworks, announced that the company’s valuation doubled to $4.4 billion in 2023, up from $2.2 billion in 2022.
The company, helmed by CEO Barry Silbert, repaid a billion in debt. Consolidated revenues came in at $749 million, slightly down in comparison to 2022’s $813 million.
The letter also added that the broadening of the New York Attorney General’s lawsuit against Gemini, Genesis and DCG last week is the “same baseless complaint recirculated.”
NYAG Letitia James announced that she was tripling the restitution amount last week. She initially filed the complaint against the three companies in October. Silbert is also named in the suit.
The $3 billion now sought by the NYAG “represents the total claims pool in the Genesis bankruptcy and we expect creditors to be paid back in full on the value of their claims.”
“DCG has always conducted its business lawfully and with integrity,” the letter added.
It also gave color to the objection filed by DCG in the Genesis bankruptcy case last week. In a filing, DCG said that the current Genesis bankruptcy plan “favors” some creditors.
“It also strips DCG of other valuable economic and corporate governance rights further violating the Bankruptcy Code and demonstrating a lack of good faith,” the filing said.
The Monday letter said, “We have stated that DCG would support a plan that pays creditors a 100% recovery; however the proposed plan — developed without input from DCG — violates United States bankruptcy law and favors a small controlling group of creditors over others. DCG cannot support a plan that is unlawful and deprives DCG of its corporate governance rights.”
As part of FTX’s bankruptcy proceedings, a judge recently ruled that the creditors should receive the sum that their crypto was worth as of November 2022, when FTX filed for bankruptcy, and should not be repaid at current prices. Certain cryptos, including bitcoin (BTC) and ether (ETH), have rebounded since the collapse of the exchange, with BTC sitting around $48,000.
Get the news in your inbox. Explore Blockworks newsletters:
- The Breakdown: Decoding crypto and the markets. Daily.
- 0xResearch: Alpha in your inbox. Think like an analyst.
