Digital Currency Group is selling shares in several of its cryptocurrency funds at a high discount, and has started offloading its holdings in investment vehicles run by subsidiary Grayscale, the Financial Times reported on Tuesday.
Woes have piled up for SoftBank-backed DCG with its lending unit Genesis filing for bankruptcy protection, owing creditors at least $3.4 billion after being toppled by a market rout along with exchange FTX and lender BlockFi. The reported move comes as DCG is trying to raise funds to support its collapsed lending units under Genesis.
A quarter of DCG's stock in its ethereum fund has been sold, raising as much as $22 million in several trades since January 24, the newspaper said, citing U.S. securities filings seen by them. DCG has also moved to sell smaller blocks of shares in its Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust and Digital Large Cap Fund, the report added.DCG, owned by Barry Silbert, owns a portfolio of crypto companies in addition to Genesis, including crypto news and events site CoinDesk and New York-based Grayscale, a major digital asset manager. Those companies are not bankrupt.