A series of scandals and bankruptcies rocked the crypto business in 2022. The events of the past year damaged investor trust and reinforced the federal and state-level regulatory onslaught on crypto companies in the United States. The instability in the crypto market has taken a toll on the profits of crypto enterprises.
The turbulence also wiped out Barry Silbert’s crypto empire’s riches. The Digital Currency Group (DCG) reported a $1.1 billion loss and $719 million in consolidated revenue. The crypto conglomerate’s portfolio comprises crypto trading companies Genesis and Grayscale Investments, the issuer of the Grayscale Bitcoin Trust (GBTC).
According to news, the Digital Currency Group’s losses in what it called a “challenging year” approached a billion dollars. The crypto conglomerate attributed the hefty loss to falling cryptocurrency prices as well as the impact of Three Arrows Capital’s collapse on its subsidiary Genesis, which caused the crypto lender to file for Chapter 11 bankruptcy last month.
According to DCG’s investor report for the fourth quarter of 2022, the company had total assets totaling $5.3 billion as of December 31, 2022. The company’s revenue in the fourth quarter was $143 million, with losses of $24 million.
The consolidated balance sheet detailed the firm’s holdings, which comprised $262 million in cash and cash equivalents and $670 million in investment assets such as tokens and Grayscale Trust shares. The remaining assets represented the assets in the firm’s portfolio. A DCG spokesman clarified that the assets’ fair worth had been marked to market.
