Claim BonusCrypto Prices To Recover As DCG, Genesis, Gemini, And Creditors Reach Agreement
Crypto Prices News: Digital Currency Group (DCG) plans to sell Genesis Global Trading and bankrupt lending business Genesis Global Capital as part of its restructuring agreement with creditors.
Genesis creditors expect an 80% recovery under the proposed restructuring plan. Additional recovery of funds depends on a convertible preferred equity note and realized liquidation prices based on DCG and Genesis assets. Does the agreement mean crypto prices will continue to rally now?
DCG Reaches Agreement With Genesis Creditors
On February 6, Genesis Global Holding announced 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 in 2032 for convertible preferred stock. It will also refinance existing 2023 term loans valued at nearly $500 million to pay back creditors.
DCG will contribute its Genesis Trading equity shares to Genesis Global Holdco, the holding company of Genesis Capital. It will bring all Genesis companies under the same holding company. Thereafter, Genesis Trading and Genesis Capital will go through a sale process to return creditors’ funds. DCG and Genesis Global Holding expect to exit bankruptcy 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 asserts it demonstrates Gemini’s continued commitment to helping Earn users achieve a full recovery of the assets.
Crypto Prices to Recover As FTX Contagion Subdues
The crypto market’s spectacular recovery in January would likely continue this month as traders believe the end of the conflict between Genesis and Gemini will improve market sentiment.
Bitcoin and Ethereum prices are already started to recover after a pullback. Bitcoin (BTC) price is trading at $22,933, up 1% in the last 24 hours. Meanwhile, Ethereum, Polygon (MATIC), Litecoin, Avalanche, Aptos, and other crypto record upside momentum in prices.
Also Read: Sam Bankman-Fried Reached An Agreement With U.S. Prosecutors
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