Digital Currency Group's Grayscale Investments continues to print money as its parent company wades uncertain waters.
Grayscale's estimated revenues from its flagship bitcoin and ether funds came in at $41.92 million for the month of July, bringing total revenues for the firm's two largest products to $278.38 million since the beginning of the year.
The revenue figures are a bright spot for DCG, which shared second quarter financial results with its shareholders on July 31. The company reported a consolidated EBITDA loss of $79 million for the second quarter, illustrating the significant credit losses of Genesis. Some companies in DCG's family of firms were cash flow positive, including Foundry. It's currently eyeing potential investment opportunities for a number of its subsidiaries, including exchange Luno, media company CoinDesk, and trading outfit Genesis.
Grayscale, however, remains its crown jewel, with ETHE and GBTC estimated revenues for the second quarter coming in at $126.2 million.
Grayscale is also in the process of upgrading GBTC to a spot exchange-traded fund.
"As a reminder, Grayscale has been at the forefront of the effort to bring a spot ETF to the U.S. market," DCG said in the recent investment letter. "Since the SEC denied Grayscale’s application to convert GBTC to an ETF in June 2022, the team has been working vigorously to appeal the decision."
As Blackrock entered the race to launch a spot bitcoin ETF, this led to a surge in activity in the bitcoin market, which carried over to Grayscale's products. Days after Blackrock's ETF filing, daily volume of GBTC spiked to $172 million. Over the following weeks, the GBTC discount to NAV reduced from -44% to as much as -25%.
Since the beginning of the year, the AuM of Grayscale's Bitcoin Trust has increased from $10.54 billion to just over $18 billion on July 31, as the price of bitcoin has grown.
Third paragraph updated for clarification.
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