Venture capital firm D has started selling shares of some of its priced cryptocurrency firms at a discounted price to pay its Genesis creditors. According to a Financial Times report, these sales include some of its Grayscale subsidiary holdings.

DCG has made moves to support its bankrupt firm, Genesis, which is considered its most lucrative subsidiary. The venture capital firm is willing to risk Grayscale’s assets to prevent creditors from taking over its lending firm.

Founded in 2015, DCG is one of the oldest and largest crypto investors. A strong list of investors backs the venture capital firm owned by former banker Barry Silbert. Investors like SoftBank, Sovereign Wealth Fund GIC, and Alphabet’s venture arm Capital G provide funds for DCG.  

DCG Is Risking It All for Genesis

Grayscale is an American digital currency asset management company owned by Digital Currency Group (DCG). The digital asset manager has been an integral part of DCG since it became a subsidiary in 2015. Grayscale cough up millions of dollars annually for DCG by managing cryptocurrency assets or its customers.

The move to offload some of the investment vehicles managed by Grayscale has highlighted the importance of Genesis to the venture capital firm. DCG is also selling these assets at a steep discount, with the value of the shares far below its acquisition price, to revive crypto lender Genesis.

Recent Sales Focused on Ethereum Trust 

Earlier this year, DCG declared its intentions to raise funds from asset sales to repay Genesis’s $3 billion debt. Genesis has struggled to stay afloat after its exposure to the FTX saga; the crypto lender filed for bankruptcy in January due to its inability to pay off debt.

DCG, poised to revive the crypto lender, is looking to raise funds from asset sales. One of the significant assets on its long-term sales list is the Ethereum fund. The venture capital firm has moved to sell a quarter of the Ethereum stock since January 24 to raise as much as $22 million. However, it sold the assets at $8 per share, half of what it spent acquiring them.

Smaller blocks of shares like Litecoin Trust, Bitcoin Cash Trust, Ethereum Class Trust, and Digital Large Cap Funds are among the claims DCG is looking to sell. It has branded the sales “an ongoing portfolio rebalancing” in the statement. 

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