{"id":8710,"date":"2022-11-22T22:44:33","date_gmt":"2022-11-22T22:44:33","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=8710"},"modified":"2022-11-22T22:44:34","modified_gmt":"2022-11-22T22:44:34","slug":"silbert-downplays-liquidity-crisis-expects-800m-revenue-in-2022-for-dcg","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=8710","title":{"rendered":"Silbert downplays liquidity crisis, expects $800M revenue in 2022 for DCG"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n   <\/p>\n<p>Following rumors of potential contagion from FTX, Digital Currency Group (DCG) CEO Barry Silbert sent shareholders a memo on Nov. 22 addressing the situation surrounding Genesis\u2019 liquidity.<\/p>\n<p>A potential billion-dollar hole in the Genesis balance sheet has drawn speculation as to the future of the crypto brokerage. Moreover, Genesis is a subsidiary of DCG, giving rise to speculation that the failure of the parent company to bail out the struggling brokerage could be an ominous sign.<\/p>\n<p>Genesis has failed to raise the additional funds required after the collapse of FTX. Further, Genesis held over 80 million in FTT tokens which saw a decline of 95% in November.<\/p>\n<p>Speculation began after Genesis paused withdrawals of its Earn program on Nov. 16. However, Silbert said the suspension of withdrawals at Genesis\u2019 lending arm Genesis Global Capital was an \u201cissue of liquidity and duration mismatch in the Genesis loan book.\u201d The CEO noted that these issues have \u201cno impact\u201d on Genesis\u2019 spot and derivatives trading or custody businesses.<\/p>\n<p>In an apparent show of strength, Genesis has hired financial and legal advisers to look at \u201call possible options amidst the fallout from the implosion of FTX\u201d to avoid filing for bankruptcy. A statement that built on Genesis CEO Michael Moro\u2019s comments that \u201cwe mitigated our losses with a large counterparty who failed to meet a margin call to us.\u201d<\/p>\n<p>A spokesperson for Genesis told Bloomberg that \u201cwe have no plans to file bankruptcy imminently\u201d on Nov. 21. However, the statement did not rule out the possibility of bankruptcy if a cash injection is not found.<\/p>\n<p>Importantly, DCG has a liability to Genesis Global Capital of about $575 million, due May 2023. The money was borrowed \u201cin the ordinary course of business,\u201d 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.<\/p>\n<p>In a move to increase transparency amid speculation, Silbert confirmed that DCG\u2019s only other debt is a $350 million credit facility. He also explained that DCG has only raised $25 million in primary capital and said the company is \u201cpacing to do $800 million in revenue this year.\u201d<\/p>\n<p>Posted In: Earnings, People<\/p>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/digital-currency-group-ceo-barry-silbert-downplays-ftx-impact-on-genesis-expects-800m-revenue-in-2022\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Following rumors of potential contagion from FTX, Digital Currency Group (DCG) CEO Barry Silbert sent shareholders a memo on Nov. 22 addressing the situation surrounding Genesis\u2019 liquidity. A potential billion-dollar hole in the Genesis balance sheet has drawn speculation as to the future of the crypto brokerage. Moreover, Genesis is a subsidiary of DCG, giving [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8711,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-8710","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8710"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8710\/revisions"}],"predecessor-version":[{"id":8712,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8710\/revisions\/8712"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/8711"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}