Digital Currency Group (DCG), a crypto conglomerate, has announced that Chief Financial Officer Michael Kraines resigned in April and disclosed that it has completely repaid a $350 million senior secured term loan during the first quarter.
Kraines has held the role of CFO for the last two years. According to the letter sent to shareholders, DCG has hired Heidrick & Struggles to search for a new chief financial officer (CFO). In the meantime, President Mark Murphy and Chief Strategy Officer Simon Koster will be in charge of the finance department.
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Additionally, in the letter, DCG, the parent company of CoinDesk, reported that its revenue for the first quarter was $180 million, up 63% from the previous quarter as crypto prices skyrocketed but was still down from the previous year. In addition, during the previous quarter, it recorded a loss of $6 million based on adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda).
The fall of the cryptocurrency market in 2017 was a significant blow to the firm, resulting in the Genesis lending section being taken to court for bankruptcy protection. DCG reported a loss of $1.1 billion for the year 2022 due to the falling prices of cryptocurrencies and the reorganization of Genesis.
DCG said that based on its performance in the first quarter, it is heading toward 2023 sales and Ebitda of about $620 million and approximately $140 million, respectively. This estimate does not include the Genesis company, which is still under Chapter 11 protection.