The Digital Currency Group (DCG) is attempting to raise funds by selling its Grayscale stake at a discount, which may lead to more pain in the market .



DCG, one of the oldest players in the industry, has been in turmoil for the last few months, impacted by the collapse of FTX . Its lending arm, Genesis, which filed for bankruptcy last month, owes $3 billion to various creditors.



DCG is trying to pay back Genesis creditors by selling several of its assets. Among them, its stake in Grayscale, one of the largest digital assets managers.



DCG Sells Grayscale Shares to Pay Back Creditors 



The Financial Times reported that DCG is selling Grayscale stocks to raise funds to bring out Genesis from bankruptcy. The U.S. Securities and Exchange Commission (SEC) filing revealed that DCG has started to offload Grayscale stocks at a discount.



Grayscale manages the Grayscale Bitcoin Trust (GBTC), which has over $14.5 billion in assets under management. But, the GBTC is running at a discount from the underlying asset, i.e., Bitcoin, due to the crypto winter.



Source: Financial Times



Along with Bitcoin Trust, DCG is also selling its stake in other trusts, such as Ethereum Trust, Litecoin Trust, Bitcoin Cash Trust, and Ethereum Classic Trust. The company sold about a quarter of its Ethereum Trust to raise $22 million.



DCG told the FT: “This is simply part of our ongoing portfolio rebalancing.” The community expects “pain” in the market with this rebalancing.



Will Genesis Rise Back From Bankruptcy?



The trouble intensified for Genesis when Cameron Winklevoss publicly asked Genesis to solve Gemini Earn users’ problems. Genesis owed $900 million to Gemini Earn users and a total of $3 billion to various other creditors.



However, Gemini and Genesis reached a $100 million agreement to resolve the issue. DCG is restructuring Genesis to help it through the bankruptcy process. The creditors expect to recover 80% of their funds with this restructuring. 



Genesis lawyer Sean O’Neal believes the crypto lender can exit bankruptcy by the second week of May.



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