• Digital Currency Group (DCG) announced that Chief Financial Officer Michael Kraines stepped down and the company fully repaid a $350 million loan in the first quarter.
• DCG reported first-quarter revenue of $180 million, up 63% from the fourth quarter as crypto prices soared.
• The company lost $1.1 billion in 2022 due to plunging crypto prices and restructuring of its Genesis lending division, though it is expected to reach 2023 revenue and Ebitda of about $620 million and about $140 million, respectively – excluding the Genesis business.

DCG CFO Steps Down

Crypto conglomerate Digital Currency Group (DCG) announced that Chief Financial Officer Michael Kraines stepped down in April. President Mark Murphy and Chief Strategy Officer Simon Koster will run the finance department in the meantime as Heidrick & Struggles is engaged for a new CFO search.

Repays Loan

In addition to announcing its CFO stepping down, DCG revealed that it fully repaid a $350 million senior secured term loan during the first quarter. This loan was taken out prior to the collapse of the crypto market last year which resulted in losses for DCG.

Strong Q1 Performance

DCG reported first-quarter revenue of $180 million, up 63% from the fourth quarter as crypto prices soared, though still down from a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) were recorded at a loss of $6 million last quarter.

2022 Losses

DCG lost $1.1 billion in 2022 amid citing plunging crypto prices and the restructuring of Genesis lending division which ended up in bankruptcy court.

Expectations for 2023

Based on its first-quarter performance, DCG is expected to reach 2023 revenue and Ebitda of about $620 million and about $140 million respectively – excluding Genesis business which remains in Chapter 11.