• Digital Currency Group (DCG) CEO Barry Silbert sent shareholders a memo on Nov. 22 addressing the situation surrounding Genesis’ liquidity.
  • Silbert said the suspension of withdrawals at Genesis’ lending arm Genesis Global Capital was an “issue of liquidity and duration mismatch in the Genesis loan book”
  • The CEO noted that these issues have “no impact” on Genesis’ spot and derivatives trading or custody businesses.
  • Genesis has hired financial and legal advisers to look at “all possible options amidst the fallout from the implosion of FTX”
  • DCG has a liability to Genesis Global Capital of about $575 million, due May 2023. The money was borrowed “in the ordinary course of business,” according to Silbert
  • The company also has a $1.1 billion promissory note due in June 2032 due to the assumption of liabilities from Genesis after the default of Three Arrows Capital.
  • DCG’s only other debt is a $350 million credit facility.
  • Silbert explained that DCG has only raised $25 million in primary capital.
  • The CEO said the company is “pacing to do $800 million in revenue this year.”

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