The cryptocurrency conglomerate known as Digital Currency Group (DCG) is apparently preparing to generate cash and maintain its liquidity by selling its assets in cryptocurrency funds that are managed by a subsidiary of the company known as Grayscale Investments.

According to a report published on February 7 by the Financial Times, citing United States securities filings, DCG sold about a quarter of its shares in Grayscale’s Ether (ETH)-based fund for about $8 per share. share, even though each share had a claim of nearly double that amount in ETH. The presentations were cited in the report.

In addition to this, he is said to have sold small parcels of shares in Grayscale’s Litecoin (LTC), Bitcoin Cash (BCH) and Ethereum Classic (ETC)-based trusts. This is in addition to its Digital Large Cap Fund, which is a unique fund that invests in Bitcoin (BTC), Ether, Polygon (MATIC), Solana (SOL), and Cardano (ADA).

DCG’s response when asked about the share sale was that “it’s just part of our regular portfolio rebalancing.”

Despite this statement, there are others who feel that Barry Silbert’s DCG could be heading into some kind of financial difficulty.

Another of his companies, cryptocurrency lending business Genesis Global Capital, filed for bankruptcy on January 19 and is reported to owe its creditors more than $3 billion.

The companies controlled by DCG have been significantly affected by the contagion that resulted from the fall of FTX. In recent weeks, these companies have been forced to lay off more than 500 people.

However, DCG has taken a number of steps to maintain liquidity in 2023, including informing its shareholders in a January 17 letter that it would suspend its quarterly dividend payments in a bid to improve its balance sheets. This was one of the many initiatives that DCG has carried out.

After claiming that he had received offers for cryptocurrency news outlet CoinDesk in excess of $200 million, DCG reportedly sought the assistance of financial advisory firm Lazard to help him weigh options to sell CoinDesk, which is another of his subsidiaries. .

According to the company’s website, DCG’s venture capital portfolio includes around 200 crypto-related startups, some of which include Grayscale, Genesis, and CoinDesk. In addition, DCG has interests in a number of other businesses, such as cryptocurrency exchange Luno and advisory firm Foundry.