Digital Currency Group reported a loss of $1.1 billion for 2022, according to the company’s fourth quarter.
Cash and cash equivalents as of 31 December 2022 was just $262 million, while the Grayscale parent company had $670 million in investment assets.
The consolidated balance sheet showed full year revenue of $719 million for 2022, with $124 million in Q4.
Digital Currency Group (DCG), a US-based crypto company recently in the news for the troubles facing it and some of its subsidiaries following the crypto winter, has reported a $1.1 billion loss for the 2022 financia year.
Crypto publication CoinDesk reported on Monday.
DCG: Market crash and 3AC default impacted balance sheet
According to details in the company’s fourth quarter report, part of the hit to profits came from the crypto market crash. Other than the dump in Bitcoin price, DCG’s balance sheet was also impacted by a major default on Genesis, the firm’s lending platform.
In particular, the company suffered massively from the collapse of crypto hedge fund Three Arrows Capital (3AC), the quarterly report detailed. Genesis filed for bankruptcy in January this year.
DCG reportedly held $5.3 billion in total assets as of 31 December, 2022, with cash and cash equivalents totaling $262 million. However, the consolidated balance sheet also shows investment assets of just $670 million, which included held tokens, venture investments and Grayscale trust shares.
For Q4, the venture capital firm reported revenues of just $143 million, while losses reached $24 million. DCG’s consolidated 2022 revenue was $719 million.
Digital Currency Group is the parent company of Grayscale Investments, Luno, Foundry Services, Genesis Trading, TradeBlock and CoinDesk.
The post Digital Currency Group reported $1.1 billion loss for 2022 appeared first on CoinJournal.