Is Genesis considering bankruptcy proceedings?
According to the NYT, Genesis has reached out to a bank for help in developing different types of strategies, not ruling out bankruptcy.
Now the outcome has not been finalized, and the cryptocurrency lender can avoid this procedure. Recall that Voyager Digital was recommended to file for bankruptcy in the summer.
According to comments from Genesis' CEO:
We are consulting with counterparties and investors. At this point, we're looking to make that process more intense.
Last week, Genesis stopped lending and withdrawing funds, justifying the high demand on the back of the FTX events. According to parent company founder Barry Silbert:
Spot, derivatives trading, and the custodial business are operating normally. The only question is liquidity and the timing of loan repayments.
The company has one external debt of $350 million provided by a group of lenders led by Eldridge. Estimated revenues in 2022 are about $800 million.
Barry Silbert states:
The group of companies will come out of this crypto-winter much stronger, as previous ones may have had a more significant impact, but managed to survive them.