DCG reports revenue growth amid crypto market bounceback
Quick Take
- Digital Currency Group (DCG) saw its revenue jump 51% to $229 million in Q1 2024, buoyed by gains in cryptocurrency prices.
- Grayscale led with $156 million in revenue from a bitcoin price surge, while Foundry and Luno also reported substantial earnings.
- DCG’s strong quarter reflects a market recovery despite past challenges like Genesis’ bankruptcy.
Crypto conglomerate Digital Currency Group (DCG) saw its consolidated revenue grow amid a recent run-up in cryptocurrency prices.
The Barry Silbert-owned conglomerate said its consolidated topline rose to $229 million in the first quarter, up 51% from the same time last year, according to a letter shared with The Block. The revenue growth came as each of DCG's wholly owned subsidiaries — crypto exchange Luno, bitcoin mining firm Foundry and crypto asset manager Grayscale — notched profits in the first three months of 2024, buoyed by a bounceback in cryptocurrency prices.
“The first quarter of 2024 was marked by several exciting developments for our industry,” the letter read. “Against this backdrop, we are pleased to showcase a strong start to the year for DCG.”
In the letter, DCG broke down its revenue growth by business, with Grayscale generating $156 million of revenues fueled by a surge in bitcoin price, Foundry raking in $51 million mostly from staking and equipment sales revenues, and Luno taking in $16 million as it experienced higher trading volumes amid greater price volatility in the crypto market.
DCG's comeback follows a stunning resurgence in the cryptocurrency market, which has seen a pullback in recent weeks. In March, bitcoin’s price hit an all-time high of roughly $73,000, according to The Block’s price data.
The bounceback has coincided with a series of positive market events for the digital assets industry, including U.S. regulators’ approval in January of several spot-bitcoin ETFs, including the DCG-owned Grayscale Bitcoin Trust ETF (GBTC). While Greyscale's ETF saw fierce competition from BlackRock's IBIT and Fidelity's FBTC, it still closed the first quarter of 2024 with 26.5% of the spot bitcoin ETF market, though the long-term trend has shown a downward trajectory.
DCG’s first-quarter revenue growth is the latest sign of the conglomerate’s financial turnaround. The crypto empire navigated dire financial and legal straits during the last two years, punctuated by the bankruptcy of its subsidiary Genesis, with Genesis suing DCG in September for unpaid crypto loans. DCG also faced legal battles with the New York Attorney General’s Office and Gemini co-founders Tyler and Cameron Winklevoss. In an effort to staunch some of its losses, DCG sold off news site CoinDesk to crypto exchange Bullish in November in an all-cash deal, though the amount was not disclosed.
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