Genesis owner DCG suspends dividend payouts Genesis owner DCG suspends dividend payouts
The decision marks Digital Currency Group's latest attempt to preserve liquidity.
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Updated: Jan. 18, 2023 at 2:06 am UTC
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Digital Currency Group (DCG) has discontinued dividend payments, according to the letter sent by the company to its shareholders on Jan. 17.
The company said in its letter that it has “made the decision to suspend [its] quarterly dividend distribution until further notice.” It is unclear whether those dividends were previously paid from the company’s general earnings or its crypto profits.
DCG cited its ongoing efforts to reduce operating costs and preserve liquidity during the poor crypto market as its reason for ending dividend payouts.
DCG has not publicly announced that it will discontinue dividends. The news was reported by DCG subsidiary CoinDesk, who obtained a shareholder letter copy. The company’s ongoing financial difficulties were already publicly known.
One subsidiary, Genesis, appears to be the main cause of DCG’s struggles. Genesis halted user withdrawals and loan redemptions in November. It also suspended withdrawals at Gemini Earn — a product offered in partnership with the crypto exchange Gemini that was officially discontinued last week.
Genesis also laid off 30% of its workers earlier this month. It reportedly owes $3 billion to creditors, and DCG is working to cover it.
However, financial stress likely exists throughout all of DCG. In recent weeks and months, the firm has shut down its wealth management subsidiary, HQ Digital, and discontinued interest-bearing accounts at its crypto wallet subsidiary, Lumo.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Digital Currency Group
Digital Currency Group’s mission is to accelerate the development of a better financial system.
Genesis
Genesis is an institutional digital asset markets and a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors.