Digital Currency Group Hits 59% Revenue Boost in Q4: Details
Crypto-focused venture capital company Digital Currency Group (DCG) has announced its new revenue for the fourth quarter of 2023.
Bitcoin Boosts Digital Currency Group Revenue Boost
In a letter sent to investors, Digital Currency Group claimed to have had a 59% boost in its revenue in Q4, 2023. Compared to Q4 2022 when the consolidated revenue was only $132 million, the conglomerate registered up to $210 million in the last quarter of last year.
Based on the statistics offered by the Stamford, Connecticut-based private company that owns Grayscale Investments, its earnings before interest, taxes, depreciation, and amortization (EBITDA) was $99 million. During the same period the previous year, DCG’s EBITDA was a negative $7 million.
Digital Currency Group also acknowledged that assets with higher prices including Bitcoin contributed significantly to the jump in its revenue. On its own, Bitcoin has also enjoyed a boost via the launch of the first United States spot Bitcoin ETF which involves a direct investment in the token after several years of seeking the indulgence of the SEC on the matter.
Markedly, the flagship cryptocurrency is currently one of the digital assets demonstrating outstanding performance in the market. Some experts and analysts believe that within the next one or two weeks, BTC will hit $50,000.
Inclusive of the figure recorded in Q4, the 2023 fiscal year for Digital Currency Group registered a total of $749 million with EBITDA of $275 million.
“As of December 31, 2023, DCG’s investment portfolio (including tokens, Grayscale trust shares, venture/fund investments, and public equities) was marked at [about] $975 million,” the company explained in the letter to its investors.
Multiple Headwinds at DCG
Meanwhile, Grayscale’s GBTC was one of the spot Bitcoin ETFs approved by the U.S. SEC a month ago.
The offering has been seeing huge outflows compared to the other nine spot Bitcoin ETFs. GBTC outflows have been in hundreds of millions but recently, it has started slowing down. As of February 10, only $51.8 million was said to have left the trust.
In other news, the New York Attorney General tripled the size of the estimated penalty on the alleged lawsuit against Digital Currency Group. From $1 billion which was initially recorded, the criminal charges levied are now worth $3 billion, per NYSAG’s new filing.
The post Digital Currency Group Hits 59% Revenue Boost in Q4: Details appeared first on CoinGape.
Filed under: News - @ January 1, 1970 12:00 am