DCG Reaches In-Principle Agreement With Genesis Creditors To Convert $1.1 Billion Of Bonds Into Convertible Preferred Shares

Digital Currency Group (DCG) has reached an agreement in principle with Genesis creditors (holding or representing more than US$2 billion in claims) that DCG will exchange US$1.1 billion in bonds due in 2032 for convertible preferred shares issued by DCG as As part of the Genesis bankruptcy plan, DCG will also refinance its existing 2023 term loan with a total value of approximately $500 million through two new junior secured term loan payments to creditors in two tranches. At the same time, as part of the transaction, DCG also plans to sell the equity of Genesis Global Trading, the Genesis encryption trading arm, to Genesis Global Holdco, bringing all Genesis entities into the same holding company. Additionally, as part of the agreement, Gemini has agreed to provide up to $100 million in additional funding to Earn users as part of the program. Genesis will initiate the sale process for Genesis Global Trading and explore other value-maximizing transactions pending the completion of these transactions, which remains subject to final documentation and necessary court approvals in principle. Foresight News previously reported that Digital Currency Group (DCG) owes Genesis more than $1.65 billion, including a $575 million loan due this May and a $1.1 billion promissory note due June 2032.