According to the company, Genesis, this will bolster its position as a global leader in crypto capital markets.
Following recent market developments, Genesis obtains an additional equity infusion of $140 million. On Nov. 10, Genesis Trading made the announcement that its parent firm, Digital Currency Group, will provide a fresh stock injection of $140 million.
To “strengthen its balance sheet” and advance its “position as a global leader in crypto capital markets,” the company claims that this choice was made. Additionally, the trading company stated that it hoped the equity infusion would enable its business to support its customers and “the growing demand” for its services. According to a screenshot of a letter delivered to its clients that Wu Blockchain posted on its Twitter account, this is the case.
Genesis Trading disclosed on October 10 that its derivatives business had approximately $175 million in funds hidden away in an FTX trading account. The trading company assured its clients that despite FTX’s “liquidity crunch” and recent bankruptcy, its market-making operations would not be impacted by the millions of dollars locked in FTX.
The fact that Genesis doesn’t have “an ongoing lending relationship with FTX or Alameda” further reassures its clients. Many businesses are separating themselves from the FTX fallout in light of recent market developments that have negatively impacted the entire cryptocurrency industry.
These businesses include Tether, Circle, Kraken, and Coinbase, all of which have publicly stated that they are not exposed to the troubled firms. Genesis Trading was one of the illustrious lending institutions in July that had exposure to the now-liquidated Singaporean cryptocurrency hedge fund Three Arrows Capital. Michael Moro, the company’s former CEO, revealed at the time that losses had been reduced after 3AC had been unable to meet a margin call on capital borrowed from Genesis.
