Genesis receives additional equity infusion of $140M following recent market events
Genesis trading announced on Nov. 10 that it will receive an additional equity infusion of $140 million from its parent company, Digital Currency Group. According to the company, this decision was made to “strengthen its balance sheet” and boost its “position as a global leader in crypto capital markets.”
Genesis said it also hopes that the equity infusion will put its company in a position to support its clients and “the growing demand” for its services. This is according to a snapshot of a letter sent to its clients, as shared by Wu Blockchain on its Twitter account.
Genesis sent letters to clients stating that it had obtained an additional equity infusion of $140M from parent company, Digital Currency Group. Genesis, with $175 million locked in FTX, is also the largest creditor to Three Arrows Capital Babel Finance. pic.twitter.com/d77QCODdsf
On Oct. 10, Genesis trading revealed that its derivatives business had around $175 million worth of funds locked away in an FTX trading account. Although FTX is facing a “liquidity crunch” and has recently filed for bankruptcy, Genesis assured its clients that the millions of dollars locked in FTX would not impact its market-making activities.
As part of our goal in providing transparency around this week’s market events, the Genesis derivatives business currently has ~$175M in locked funds in our FTX trading account. This does not impact our market-making activities.
Genesis also reassured its clients that it doesn’t have “an ongoing lending relationship with FTX or Alameda.” In light of recent market events that have taken a toll on the entire cryptocurrency industry, many companies are distancing themselves from the FTX fallout, including Tether, Circle, Kraken, and Coinbase,
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