Digital Currency Group (DCG) is selling shares in several of its cryptocurrency funds at deep discounts and has begun selling its holdings in investment vehicles run by subsidiary Grayscale, the Financial Times reported on Tuesday.
Troubled DCG, backed by SoftBank Group Corp (9984.T ), has its lending arm Genesis filing for Chapter 11 bankruptcy and owes creditors at least $3.4 billion after being toppled by a market rout that also swept exchange FTX and lender BlockFi.
The move reportedly comes as DCG is trying to raise capital to back its collapsed lending arm under Genesis.
"This is just part of our ongoing portfolio rebalancing," a DCG spokesman said.
Since Jan. 24, DCG has sold a quarter of its shares in its ethereum fund, raising as much as $22 million in several transactions, the newspaper said, citing U.S. securities filings it has seen.
DCG has also started selling smaller stakes in its Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust and Digital Large Cap Fund, the report added.
Owned by Barry Silbert, DCG, in addition to Genesis, runs a string of crypto firms including crypto news and events site CoinDesk and major New York-based digital asset manager Grayscale.
