Crypto News- Digital Currency Group Inc, a prominent venture capital firm specializing in the cryptocurrency sector, has disclosed its financial performance for Q4 2023 and the entire fiscal year. In their recent announcement, DCG unveiled a Q4 consolidated revenue of approximately $210 million, marking a 12 percent increase from the previous quarter. The surge in revenue was propelled by strong gains from their cryptocurrency investments, particularly with Bitcoin (BTC) showcasing bullish momentum.
Moreover, Grayscale Investments, backed by Digital Currency Group, reported Q4 revenues of $156 million, marking a robust 24 percent quarter-over-quarter growth. On the other hand, DCG’s subsidiary, Foundry, which focuses on crypto mining, witnessed a slight downturn with Q4 revenue totaling $38 million, down 22 percent from the preceding quarter.
Digital Currency Group’s Q4 2023 Revenue Hits 210M Dollars, Pushing Valuation Beyond 4.4B Dollars
Benefiting from the bullish trend in Bitcoin prices during Q4 2023, DCG reported an impressive EBITDA of $99 million, representing a substantial 42 percent increase quarter-on-quarter. Despite not fully recovering from bankruptcy, DCG successfully managed to reduce its outstanding debt by over $1 billion during the fourth quarter.
Looking at the full-year performance for 2023, DCG reported a consolidated revenue of $749 million, slightly lower than the $813 million recorded in the previous year. However, the company saw a notable increase in full-year EBITDA, totaling $275 million compared to $261 million in the prior year. Additionally, DCG strategically closed or divested less profitable ventures, such as the media platform Coindesk. As of December 31, 2023, the company’s investment portfolio, including Grayscale trust shares, tokens, and public equities, amounted to approximately $975 million.
Despite facing ongoing litigation stemming from the fallout of various crypto firms during the 2022 bear market, DCG ended the fiscal year 2023 with a valuation of approximately $4.4 billion, marking a remarkable 102 percent increase from the previous year.
However, the company continues to face legal challenges, with New York Attorney General Letitia James amending her civil lawsuit to include additional victim complaints seeking restitution of $3 billion, up from the initial $1.1 billion. DCG contends that the amended demands circumvent bankruptcy laws and pledges to defend its rights vigorously.
Meanwhile, Grayscale’s GBTC, supported by DCG, maintains its leadership position despite recent outflows, particularly after its conversion to a spot Bitcoin ETF.
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