(Bloomberg) -- Coin Cloud, which operates automated teller machines that sell crypto currencies, had been seeking additional capital from Genesis, a digital asset brokerage, but it’s unclear if discussions are continuing as its rescuer itself struggles to raise cash.
Genesis had provided an unsecured loan of around $100 million to Coin Cloud, according to people with knowledge of the situation. In the latest discussions, Genesis had considered injecting equity into Coin Cloud, said the people, who asked not to be identified because the matter is private.
Representatives at Genesis and parent company Digital Currency Group declined to comment. Coin Cloud declined to comment.
Coin Cloud recently hired advisers to help rework about $125 million of the ATM operator’s debt, as the implosion of Sam Bankman-Fried’s FTX unleashed fear of contagion and exacerbated a prolonged rout in digital asset prices.
Genesis has spent the past several days seeking at least $1 billion in fresh capital for its lending unit and warning potential investors that it may need to file for bankruptcy if its efforts fail. The firm halted redemptions shortly after revealing it had $175 million locked in an FTX trading account.
Ducera Partners has been advising lenders to Coin Cloud, as Bloomberg reported last week, a group that includes Genesis. Meanwhile, M-III Partners and B. Riley Securities are advising Coin Cloud.
Las Vegas-based Coin Cloud has a network of Bitcoin ATMs across more than 4,000 locations in the US and Brazil.
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