Digital Currency Group said Monday in a letter to shareholders that the company's revenue hit $210 million during the fourth quarter of last year, a 59% increase when compared to the same period the previous year.
The company, which owns Grayscale Investments, said higher asset prices, in particular for bitcoin, was primarily responsible for the rise in revenue. DCG also reported that its fourth-quarter EBITDA leapt to $99 million versus a negative $7 million during the same period in 2022.
"For the 2023 fiscal year, DCG’s consolidated revenues were $749 million with EBITDA of $275 million," the company also said in the letter to shareholders. "As of December 31, 2023, DCG’s investment portfolio (including tokens, Grayscale trust shares, venture / fund investments, and public equities) was marked at [about] $975 million."
Although Grayscale's newly converted spot bitcoin ETF has shed billions of assets under management, it continues to rank as the largest fund of its kind and handles more than a third of daily spot bitcoin ETF trading volumes, according to Yahoo Finance data compiled by The Block.
Ongoing Genesis lawsuit
Separately, DCG's lending unit Genesis Global Holdco filed for bankruptcy protection about a year ago. The company is currently entangled in a lawsuit as the New York Attorney General alleges that, along with Genesis and another company Gemini, DCG defrauded more than 230,000 investors out of more than $3 billion.
“There is nothing new here," a DCG spokesperson said last week in a statement. "This is the same baseless complaint recirculated to generate another round of press headlines."
Genesis recently settled a lawsuit brought by the Securities and Exchange Commission and agreed to pay $21 million.
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