Bullet Points:
– Digital Currency Group (DCG) is struggling to raise funds in order to cover Genesis‘ $3 billion debt burden.
– DCG is attempting to liquidate its venture capital holdings in order to raise funds, however external funding attempts have failed so far.
– DCG has invested in a range of companies such as Coinbase, Kraken, Chainalysis, Decentraland, Circle, and Dapper Labs.

DCG, the parent company of crypto lender Genesis, is in a scramble to raise funds in order to cover the lender’s $3 billion debt burden. According to a Financial Times report on Jan. 12, citing sources familiar with the matter, Genesis owes $900 million to users of Gemini’s Earn program, over $303 million to Dutch exchange Bitvavo, as well as money to users of crypto savings firm Donut.

In an attempt to cover the debt, DCG is attempting to liquidate its venture capital holdings, which are estimated to be worth $500 million. Although this is far less than the amount owed, it is the only option the company has right now. Talks with investment bank Moelis to explore other options have been unsuccessful, and external funding attempts have also failed.

DCG has invested in a range of companies and projects over the years. Some of the most notable investments include exchanges Coinbase and Kraken, crypto investigation platform Chainalysis, Decentraland, USD Coin (USDC) issuer Circle, and Dapper Labs, the firm behind NBA Top Shots and CryptoKitties non-fungible token (NFT) collections. The company also invested $250,000 in the now-defunct crypto exchange FTX in July 2021.

It remains to be seen whether DCG will be able to raise the funds necessary to cover Genesis‘ debt burden. As of now, the company will have to rely on its venture capital holdings, which seem to be a far cry from the amount owed. If DCG is unable to raise the funds necessary, it is likely that Genesis will have to default on its debt obligations, which could have serious consequences for the crypto industry as a whole.