Digital Currency Group (DCG) informed its shareholders that its revenue for the first quarter of 2023 increased by 63% compared to the previous quarter, reaching $180 million. However, this figure is still 46% lower than the revenue recorded in the first quarter of 2022 when Bitcoin traded at around $40,000. The letter to shareholders explained that DCG’s financial performance so far this year reflects the state of the market.
CFO Michael Kraines steps down
DCG also announced the departure of Chief Financial Officer Michael Kraines in April. In the interim, DCG President Mark Murphy and Chief Strategy Officer Simon Koster co-manage the finance department while executive search firm Heidrick & Struggles searches for a suitable replacement. Kraines has been serving as CFO since March 2021.
Genesis bankruptcy protection and DCG debts
The shareholder update follows the bankruptcy protection filing by Genesis, a DCG subsidiary, in January. Although Genesis and DCG had agreed on a deal with creditors, a group of creditors reportedly “reneged” on the agreement last week. DCG’s letter expressed the company’s commitment to reaching a fair and reasonable agreement for all parties involved and promised to provide updates as the process continues.
During Q1 2023, DCG repaid a $350 million senior secured term loan issued by a lender syndicate led by private equity investment firm Eldridge. DCG has eliminated its third-party debt except for the amounts owed to Genesis. The letter highlights this as a significant milestone, allowing the company to focus on its next growth phase.