Genesis Global Expects $2.8B in Loans Sent to a Digital Currency Group & More—Fall in Revenue This Year?

November 23, 2022 By Jozeph P

(Image Credit Google)

The well-known brokerage and lending firm Genesis Global is now deeply in debt as a result of the several loans it requested, borrowing as much as $2.8 billion to finance its enterprises. According to reports, the business split part of its funds with its parent organization, Barry Silbert's Digital Currency Group, and other publicly disclosed subsidiaries. DCG has already stated that its revenue will fall short of earlier projections, particularly as 2022 approaches its conclusion this year. According to a report by Bloomberg, Genesis Global has a staggering $2.8 billion in outstanding loans from various lenders, one of which it utilizes to finance its parent firm and other sister companies. [caption id="attachment_65238" align="aligncenter" width="1024"]

NEW YORK, NY - FEBRUARY 07: Andy Serwer and Barry Silbert attend the Yahoo Finance All Markets Summit: Crypto on February 7, 2018 in New York City. (Photo by Eugene Gologursky/Getty Images for Yahoo Finance/Oath )[/caption] Although the corporation is not yet insolvent, these loans are causing debt, with the money going to each of the company's subsidiaries. The financing division of the corporation, Genesis Global Capital, provides funding to the brokerage division, Genesis Global Trading. Up to 30% of the company's lending, from Barry Silbert of the Digital Currency Group, was made to fund the operation in its entirety. The business, Digital Currency Group, has stated that it expects its income for this year to fall short of the goals it first established. The Wall Street Journal claims that this is also a contributing factor in the company's struggle to maintain its operations and its intercompany loans to the several subsidiaries it maintains. This year, DCG anticipates sales of $800 million, which is a 20% decrease from the previous year's figures. The bitcoin sector is currently focused on the many changes taking place in the world, particularly after the pandemic when the world experienced extremely high inflation as businesses began to pick up again. Due to recent market price declines and collapses, there is increased speculation that cryptocurrencies may fail. Numerous blockchains and digital assets are battling to keep their prices stable or to rise above their safety levels, which only serves as further evidence that the market may be in for a recession given the current circumstances.

By Jozeph P

Journalism explorer, tech Enthusiast. Love to read and write.

Genesis Global Expects $2.8B in Loans Sent to a Digital Currency Group & More—Fall in Revenue This Year?

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