Digital Currency Group Reports $210M in Q4 2023 Revenue as Valuation Tops $4.4B

Digital Currency Group Inc, a top-tier venture capital focused on the cryptocurrency industry, has released its Q4 2023 financial results and full-year performance. According to the announcement, DCG registered consolidated revenue of around $210 million in Q4, up 12 percent from the prior quarter. The company registered notable gains from its crypto holdings as Bitcoin (BTC) led the industry in a bullish outlook.

Furthermore, Digital Currency Group-backed Grayscale Investment recorded revenues of $156 million in Q4 2023, up 24 percent quarter-over-quarter. The company’s crypto mining firm, Foundry, registered a revenue of $38 million, down 22 percent from the prior quarter.

Following the notable uptick in Bitcoin prices during the fourth quarter of 2023, DCG reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $99 million, up around 42 percent QoQ. Although the company did not fully come out of its bankruptcy, DCG managed to reduce its outstanding debt by more than $1 billion during the fourth quarter.

DCG Full-Year Performance

As for the financial year 2023, DCG reported a consolidated revenue of $749 million, a slight drop from $813 million recorded in the prior year. The company reported a full year’s EBITDA of $275 million, which was an increase from the prior year’s $261 million. Moreover, the company closed or sold the less profitable business, including the media outlet Coindesk. Consequently, the company’s investment portfolio – including Grayscale trust shares, tokens, and public equities- by December 31, 2023, was about $975 million.

Worth noting that Digital Currency Group closed the financial year 2023 with a valuation of about $4.4 billion, up 102 percent from the prior year. Nevertheless, the company is still bound by several litigations following the impact of several crypto firms’ collapse during the height of the 2022 crypto bear market led by FTX and Alameda Research.

Market Outlook

Last week, New York Attorney General Letitia James filed an amendment to her civil lawsuit – against DCG, Genesis Global Capital, and Gemini Trust Company – to include more victim complaints requesting full compensation. As a result, NYAG James now seeks $3 billion in restitutions, up from $1.1 billion according to the original filings on October 19, 2023. The company has, however, claimed that the amended demands are against the bankruptcy protection law and will fight for its right of governance.

“Similar to the amended bankruptcy plan, Genesis devised this proposed settlement without notice to DCG to circumvent bankruptcy law and allow creditors to get paid more than the legally allowed value of their claims. We will continue to fight this attempt to undermine the law,” the report noted.

Meanwhile, DCG-backed Grayscale’s GBTC, which was recently converted to spot Bitcoin ETF, continues to lead the pack despite the notable outflows in the past few weeks.

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2024-02-13 10:45