DCG Successfully Repays Short-term Debt, Leaving Only an $1.1 Billion Promissory Note with Genesis
Publication Time:2024-08-24 06:26:07
In its latest quarterly letter to shareholders, Digital Currency Group (DCG) announced that as of June, the company has successfully repaid all short-term debt. Over the past 18 months, DCG has paid back over $1 billion to creditors, a feat attributed to significant growth in the first half of the year. Nevertheless, DCG still holds a considerable amount of debt, specifically a $1.1 billion promissory note due in 2032, which was used to pay for the bankruptcy of its crypto lending arm, Genesis. Previously, Genesis had extended asset loans worth billions of dollars to Three Arrows Capital (3AC), leading to substantial losses. To keep its subsidiary operational, DCG provided cash support and this $1.1 billion promissory note. However, following the bankruptcies of FTX and its sister company, Alameda Research, in November, Genesis was forced to suspend withdrawal functions and eventually entered bankruptcy proceedings.
Genesis
DCG
short-term debt
$1.1 billion promissory note