Digital Currency Group (DCG)
Tue, Apr 15Digital Currency Group (DCG) is a U.S.-based conglomerate comprising seven companies focused on cryptocurrency, including:
- Genesis Trading – the largest digital asset service provider for institutional investors worldwide.
- Grayscale – the leading digital asset manager globally.
- Coindesk – an online platform for crypto media, news, events, and data.
- Foundry – operates the second-largest bitcoin mining pool globally, offers a marketplace for bulk buying and selling of mining equipment, and provides logistical, financial, and educational support to crypto mining businesses.
- Luno – a cryptocurrency exchange and platform that provides news, analysis, and education.
- TradeBlock – offers institutional tools and analytics.
- HQ – a job board for digital currency positions.
DCG’s mission is to incubate, acquire, and operate businesses that deliver financial and professional services to financial institutions, corporations, and startups.
DCG has invested in 200 cryptocurrency companies, including Acala Network, BitGo, BitPay, Blockchain, Blockstream, Chainalysis, Circle, Coinbase, Decentraland, Etherscan, eToro, Fireblocks, Foundry, FTX, Kraken, Ledger, Livepeer, Nomics, Paradigm, Ripple, ShapeShift, Silvergate, The Graph, Xapo, and Zcash.
In 2021, DCG achieved a valuation of $10 billion following a $700 million investment led by Softbank Group Corp.
In late 2022, following the collapse of FTX and a $2.4 billion loan to the bankrupt hedge fund Three Arrows Capital, Genesis Trading took the drastic step of halting customer withdrawals to prevent a bank run on its cash reserves.
As a result of this action and the challenging cryptocurrency market conditions over the past year, Genesis was unable to return $3.5 billion to more than 100,000 customers. In January 2023, Genesis filed for bankruptcy protection to reorganize its finances. Gemini Trust Company, which operates the Gemini crypto exchange and is one of Genesis Trading’s largest clients, is still owed nearly $800 million as of January 2023.
As of January 2023, Coindesk is potentially exploring new ownership, and Luno has reduced its workforce by 35%.
To view DCG’s portfolio of companies, go here.
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