Did DCG use GBTC as collateral to get Genesis loan?

Ahluwalia said DCG likely used its Grayscale Bitcoin Trust (GBTC) holdings as collateral to get the first loan from Genesis. The company bought $778 million of GBTC shares between march 2021 and June 2022, hoping that the net asset value would close.

What is grayscale Bitcoin Investment Trust (GBTC)?

Grayscale is the world’s largest digital asset manager and offers institutional investors exposure to Bitcoin via its Grayscale Bitcoin Investment Trust (GBTC). It is the largest revenue generator for DCG. Grayscale also operates other trust funds with exposure to Ethereum, Ethereum Classic, Litecoin and Bitcoin Cash.

What is DCG (Digital Currency Group)?

DCG, short for Digital Currency Group, is a venture capital company with a focus on digital assets and companies in the digital asset space. It was founded in 2015 by Barry Silbert, a crypto veteran that began investing in cryptocurrencies in 2013.

Will DCG liquidate GBTC?

The potential liquidation of DCG’s GBTC holding was discussed at a recent board meeting. Digital Coin Group might pay off some of its debts by selling the sizable investment in Grayscale’s trust at a sizable loss. To fill a $1 billion shortfall on its balance sheets brought on by Genesis’ bankruptcy, DCG initiated an urgent fundraising campaign.