Digital Currency Group halts dividend payment to conserve cash
DIGITAL Currency Group (DCG), the struggling crypto empire, said it’s suspending quarterly dividends until further notice as the company seeks to preserve cash.
The move comes amid the group’s focus on “strengthening our balance sheet by reducing operating expenses and preserving liquidity”, according to a Jan 17 letter to shareholders seen by Bloomberg News.
DCG’s crypto lending unit Genesis stopped reimbursements in November amid contagion from the bankruptcy of Sam Bankman-Fried’s FTX exchange.
DCG’s founder Barry Silbert is locked in an escalating battle with Gemini crypto exchange co-founder Cameron Winklevoss, whose customers have lost access to US$900 million of funds that were placed with Genesis.
Creditors including Gemini have been working behind the scenes to try to find a solution to Genesis’s woes.
A digital-asset rout has pummelled a range of crypto outfits, particularly lenders of virtual assets, leading to a spate of insolvencies. Ailing DCG is one of the linchpins of the industry.
A spokesperson for DCG didn’t immediately reply to a request for comment. BLOOMBERG
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