Saving Grayscale Will Be Detrimental To Digital Currency Group – Bernstein
The popular crypto report body Bernstein has released a report enumerating options by which the venture capital company Digital Currency Group (DCG) could save itself and its subsidiaries with limited hassles.
The report went further to suggest that if the company is ready to take care of its finances properly, the founder, who is also the chief executive officer, might have to give up some of his claim on the company.
Here Are Your Options, DCG – Bernstein
All has not been quite well with the popular crypto venture capital firm, DCG. Even though Genesis Global Trading, one of its subsidiaries, had stopped its clients from withdrawing their funds just after the FTX fall and had pegged the reason on the collapse of the crypto exchange, leaked intelligence later revealed that the company had been battling troubles way before the FTX fall.
Now, in a letter directed to its clients, Genesis Global Trading has reiterated that it would take
much more time to settle things, and as such, withdrawals might not happen for quite a while from now.
In its report that was released yesterday, the 8th of December, the aftermath of Genesis Global’s situation is greatly telling on the crypto markets. As it is, the Digital Currency Group (DCG) has not repaid its loan of $1.7 billion back to Genesis, and Bernstein’s analysts gladly gave the company three options to choose from in putting the situation under control.
Bernstein stated in the report that DCG could either look for means to raise a sizable capital, liquefy the Grayscale Bitcoin Trust (GBTC), or dispose of assets that are nonstrategic.
Sell A Bit Of Your Company For The Greater Good
The report, having listed the options available to the Digital Currency Group (DCG), went on to suggest that the best option, however, out of the options that they have given would be for the company to initiate a buyout with partners.
According to the report, liquefying the Grayscale Bitcoin Trust (GBTC) and trying to raise a sizable amount of capital are the less pleasant options, with the former being the most dangerous and likely to be unfavourable.
The report went on to say that although selling Grayscale would be like the company shooting its own leg since it is the biggest revenue-making asset of the company right now, it could however sell others like CoinDesk, Link, and so on.
The report, having noted that the company needed to reconstruct its finances, stated that maybe, for the greater good, CEO Barry Silbert will have to give up some of his claims.
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