Crypto Prices News: Digital Currency Group (DCG) plans to sell Genesis Global Trading and bankrupt lender Genesis Global Capital as part of its restructuring deal with creditors.
Genesis creditors expect an 80% recovery under the proposed restructuring plan. Additional fund recovery is contingent on a convertible preferred stock note and realized liquidation prices based on DCG and Genesis assets. Does the agreement mean that crypto prices will now continue to rise?
DCG reaches agreement with Genesis creditors
On February 6, Genesis Global Holding announced that it has reached an agreement with Digital Currency Group (DCG), crypto exchange Gemini and ad hoc creditor groups.
Under the terms of the agreement, DCG would exchange its existing $1.1 billion promissory note due 2032 for convertible preferred stock. It will also refinance existing 2023 term loans worth nearly $500 million to repay creditors.
DCG will contribute its Genesis Trading shares to Genesis Global Holdco, the holding company of Genesis Capital. It will bring all Genesis companies under the same holding company. After that, Genesis Trading and Genesis Capital will go through a sales process to repay the money from the creditors. DCG and Genesis Global Holding expect to go bankrupt in 4 months.
Gemini co-founder Cameron Winklevoss tweeted that Gemini will contribute $100 million more for Earn users as part of the Genesis restructuring plan. He claims it demonstrates Gemini’s continued commitment to helping Earn users achieve a full asset recovery.
Crypto Prices To Rebound As FTX Contagion Suppresses
The crypto market’s spectacular recovery in January is likely to continue this month as traders believe the end of the Genesis-Gemini conflict will improve market sentiment.
Bitcoin and Ethereum prices are already starting to recover after a pullback. The price of Bitcoin (BTC) is trading at $22,933, up 1% in the last 24 hours. Meanwhile, Ethereum, Polygon (MATIC), Litecoin, Avalanche, Aptos and other cryptocurrencies are recording upward momentum in prices.
Also read: Sam Bankman-Fried reached an agreement with US prosecutors
Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by disruptive technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for quite some time and is currently covering all the latest updates and developments in the crypto industry.
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This post Crypto Prices To Recover As DCG, Genesis, Gemini, Reach Deal?
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