Digital Currency Group said in a letter to shareholders on Monday that the company recorded $210 million in revenue in the fourth quarter of last year. This is a 59% increase compared to the same period last year.
The company, which owns Grayscale Investments, said high asset prices, particularly Bitcoin, were the main reason for the increase in profits. DCG also reported fourth-quarter EBITDA jumped to $99 million, compared to negative $7 million during the same period in 2022.
“For fiscal year 2023, DCG’s consolidated revenue was $749 million and EBITDA was $275 million,” the company said in its letter to shareholders. “As of December 31, 2023, DCG’s investment portfolio (including tokens, Grayscale Trust shares, venture/fund investments, and public equities) was valued at (approximately) $975 million.”
Grayscale’s newly converted spot Bitcoin ETF has billions of assets under management, but continues to be the largest fund of its kind and accounts for one-third of daily spot Bitcoin ETF trading volume, according to Yahoo Finance data compiled by The Block. Processing more than 1.
Genesis lawsuit in progress
Separately, DCG’s lender, Genesis Global Holdco, filed for bankruptcy protection about a year ago. The company is currently embroiled in a lawsuit, with the New York attorney general alleging that DCG, along with Genesis and another company, Gemini, defrauded more than 230,000 investors out of more than $3 billion.
“There is nothing new here,” a DCG spokesperson said in a statement last week. “This is the same baseless complaint that has been recirculated to create yet another media headline.”
Recent Genesis stable It agreed to pay $21 million in a lawsuit filed by the Securities and Exchange Commission.
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