- Digital Currency Group has halted dividends as it seeks to strengthen its balance sheet
- Several of the groups in its stable have been caught up in the crypto contagion that has gripped the crypto space for the past nine months
- CEO Barry Silbert recently said he intended to push through the difficulties
Cryptocurrency giant Digital Currency Group (DCG), which is facing financial difficulties in a number of arenas, has informed shareholders that it is suspending dividends until further notice. In a letter to shareholders shared with Coindesk, the company blames “the current market environment” for the move, which it says is being done to focus on improving the health of the company’s balance sheet.
Digital Currency Group Seeking Preservation
DCG has been in financial straits for the past nine months, ever since the Terra ecosystem collapsed last May. Having fingers in so many pies exposed DCG to not just the collapse of Terra/LUNA almost every large scale one since then, which has left some of the businesses in its stable in debt to the tune of billions of dollars.
As a response to this shortfall, DCG has halted dividends, telling shareholders:
In response to the current market environment, DCG has been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity. As such, we have made the decision to suspend DCG’s quarterly dividend distribution until further notice.
Winklevoss Battle is Unwanted Distraction
The most public example of DCG’s struggles is the ongoing issues with Genesis. DCG owner Barry Silbert has been engaged in a very public battle with Gemini co-owner Cameron and Tyler Winklevoss over $900 million owed to Gemini Earn customers, which used Genesis as its interest-earning platform.
Silbert recently emphasized his desire to guide the group through the present difficulties when Cameron Winklevoss called for his resignation.
