DCG Reports Strong Financial Results Amidst Crypto Rally

Investor Letter Overview

Dear Shareholders, It's our pleasure to report our Q4 and fiscal year 2023 results. The crypto asset rally and strategic milestones, encompassing DCG's billion-dollar debt repayment and Grayscale's ETF launch on NYSE Arca, forecast a promising chapter for us and the crypto sector. Confidentiality is requested for this communication.

Financial Highlights

The fourth quarter saw crypto prices peak at $45K and a 29% QoQ BTC price increase. This propelled DCG's Q4 revenues up by 12% to $210 million. Year-over-year, Q4 revenues surged by 59%. EBITDA reached $99 million, overturning the previous year's losses. For the fiscal year, DCG's revenues slightly dipped to $749 million yet EBITDA rose to $275 million, highlighting efficiency gains. DCG's investment portfolio was valued at approximately $975 million.

Key Updates and Legal Affairs

DCG has negotiated settlements to clear over a billion dollars in debt, fulfilling its financial obligations. Simultaneously, legal confrontations persist, with the NY Attorney General amending a suit against Genesis, DCG, and claiming over $3 billion for creditors. Nonetheless, DCG remains steadfast in asserting its lawful manner of conduct. Additionally, the approval of Grayscale's spot Bitcoin ETF marks a significant stride towards mainstreaming digital currencies. The sale of CoinDesk to Bullish symbolizes the culmination of nurturing a leading media asset within the industry.