Digital Currency Group (DCG), a cryptocurrency venture capital firm, has halted quarterly dividends to keep cash on balance sheet as the group is struggling to stay afloat.
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Bloomberg reports, citing a letter to shareholders, that DCG wants to strengthen its balance sheet by "reducing operating expenses and preserving liquidity." Although the size of dividends wasn't disclosed, the reported noted that Barry Silbert's — DCG head — net worth decreased from $3 billion to $1 billion.
The move comes after DCG suspended its asset management subsidiary called HQ Digital. The group reportedly made the decision due to "a prolonged crypto winter, which creates significant hurdles for the industry," as well as the economic situation. HQ Digital was managing more than $3.5 billion, so the company does not rule out that DCG may pick up the project in the future.
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