The suspension of dividends has become the latest development in the financial predicament of the Digital Currency Group (DCG). In a recent letter to its shareholders, the crypto conglomerate informed that it would be halting its quarterly dividend payments until further notice.
According to a recent report, the step has been taken in a bid to save cash as the firm navigates the liquidity issues of its subsidiaries. DCG is reportedly focusing on strengthening its balance sheet by bringing down operational expenses and preserving liquidity.
The Digital Currency Group boasts an impressive portfolio and is the parent firm of Genesis Global and Grayscale Investments. However, the collapse of Bahamas-based crypto exchange FTX has dealt a rather hard blow to this crypto empire.
DCG’s financial woes can be attributed to one particular subsidiary, Genesis Global. The crypto broker, which suspended withdrawals in November 2022, reportedly owed more than $3 billion to its creditors. Among those creditors is the crypto exchange Gemini.
Cameron Winklevoss, the co-founder and President of Gemini has publicly claime …
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Source: Cryptocurrency - investing.com
