– Digital Currency Group (DCG) has halted quarterly dividends until further notice.
– This was in response to the FTX implosion and its repercussions on DCG’s subsidiaries.
– DCG is focusing on reducing operating expenses and preserving liquidity.
Digital Currency Group (DCG) has recently announced that it will be suspending its quarterly dividend payments until further notice. This comes in response to the FTX implosion and its repercussions on DCG’s subsidiaries.
The FTX implosion was a major blow to the crypto investment firm, with its subsidiaries feeling the brunt of the impact. One of its subsidiaries, Grayscale, is the world’s biggest digital asset manager, while another, Genesis, is an institutional lending company. The two were hit hard by the collapse, with Genesis undergoing a second round of job cuts.
In response to the current market environment, DCG revealed that it is focusing on reducing operating expenses and preserving liquidity. This has led to the decision to halt quarterly dividend payments, as stated in an email to shareholders that was viewed by Bloomberg.
The halt in dividends is a necessary step for DCG to be able to weather the current market environment and preserve the funds of its subsidiaries. With the FTX implosion still fresh in the minds of many, DCG is doing its best to ensure that its subsidiaries remain stable and profitable.
DCG is a major player in the crypto world and its decisions are sure to have far-reaching implications. The firm’s decision to suspend dividend payments is sure to be felt by many, as it affects the income of shareholders. However, the firm is confident that this decision is necessary to ensure the longevity of its subsidiaries and investments.