According to a report by Bloomberg, the beleaguered cryptocurrency investment bank is holding discussions with possible investors for at least one billion dollars in additional cash.
According to Bloomberg, which cites people familiar with the situation as sources of information, Genesis Global Trading has reportedly mentioned bankruptcy as a potential option as it seeks fresh capital. This comes just a few days after its lending unit was forced to halt withdrawals in the wake of the collapse of the crypto exchange FTX.
The revelation caused the price of bitcoin (BTC) to drop to a new low in almost two years, $15,480. However, as of the time of this publication, the price has totally returned back to where it was before the Bloomberg piece came out, and it is now trading at about $15,720.
A spokeswoman for Genesis told Bloomberg that the company does not currently intend to file for bankruptcy in the near future. “Our objective is to reach a mutually agreeable resolution to the predicament at hand so that no bankruptcy proceeding is required. Genesis has a positive and productive dialogue with its creditors.”
Both Genesis and CoinDesk are subsidiaries of Digital Currency Group, which is also the parent firm of both companies.