Cryptocurrency conglomerate Digital Foreign money Group (DCG) has reportedly begun to promote its holdings in crypto funds managed by its subsidiary Grayscale Investments because it appears to be like to lift capital and protect liquidity.

Based on a Feb. 7 Monetary Occasions report citing seen United States securities filings, DCG offered round 1 / 4 of its shares in Grayscale’s Ether (ETH)-based fund for round $8 per share, regardless of every share holding a declare to almost double that quantity in ETH.

It’s additionally stated to have offered down small share parcels in Grayscale’s Litecoin (LTC), Bitcoin Money (BCH) and Ethereum Basic (ETC)-based trusts along with its Digital Massive Cap Fund — which mixes Bitcoin (BTC), Ether, Polygon (MATIC), Solana (SOL) and Cardano (ADA) right into a single fund.

When requested concerning the share gross sales DCG was quoted as saying that: “That is merely a part of our ongoing portfolio rebalancing.”

Regardless of the assertion, some observers consider Barry Silbert’s DCG could also be headed towards monetary strife.

One other certainly one of its subsidiaries — crypto lending agency Genesis International Capital —filed for chapter on Jan. 19 and is believed toowe collectors over $3 billion.

Firms owned by DCG have been severely affected by the contagion ensuing from FTX’s implosion, with over 500 workers laid off in latest weeks.

Nonetheless, DCG has taken numerous steps to protect liquidity in 2023, comparable to asserting to its shareholders in a Jan. 17 letter that it could be halting its quarterly dividend funds because it appears to be like to strengthen its stability sheets.

Genesis collectors to count on 80% restoration underneath proposed restructuring plan

DCG has additionally sought the assistance of economic advisory agency Lazard to assist it weigh up choices to promote crypto media outlet CoinDesk — one other of its subsidiaries — after it claimed to have obtained provides for the outlet exceeding $200 million.

Grayscale, Genesis, and CoinDesk are amongst some 200 crypto-related companies in DCG’s enterprise capital portfolio in keeping with its web site. Different firms that DCG has fairness in embody the crypto alternate Luno and advisory agency Foundry.