(Bloomberg) -- Digital Currency Group reported a 23% climb in revenues and said it had repaid some of the debt owed to its bankrupt subsidiary Genesis.

Consolidated revenue rose to $188 million in the third quarter compared with $153 million in the same period a year earlier, according to a letter to investors seen by Bloomberg News. The company said EBITDA — or earnings before interest, taxes, depreciation and amortization — came in at $69 million.

DCG’s revenues turn on the fortunes of the crypto market, which has rebounded this year from a rout in 2022. Bitcoin on Tuesday extended its year-to-date rebound to over 100%, fueled by expectations that regulators will in coming weeks allow the first US spot Bitcoin exchange-traded funds.

A US court on Monday formalized a victory for DCG’s asset management unit Grayscale Investments LLC in its bid to create a spot Bitcoin ETF over objections from the Securities and Exchange Commission. 

The unit is seeking to convert the $19.5 billion Grayscale Bitcoin Trust (ticker: GBTC) — the world’s biggest Bitcoin fund — into an ETF. 

Ready for ETF

“The Grayscale team remains operationally ready to convert GBTC to an ETF upon the SEC’s approval, and the Grayscale team will share more information about potential next steps as soon as practicable,” DCG said in the letter.

Grayscale accounted for $126 million of DCG’s third-quarter revenues, the investor letter showed.

Last week, New York Attorney General Letitia James sued DCG as well as Tyler and Cameron Winklevoss’ Gemini Trust Co., alleging that they defrauded customers of $1.1 billion.

Read more: Gemini, DCG Sued by NY for Alleged $1.1 Billion Crypto Fraud

Lawsuit

The lawsuit accuses Gemini, which runs a crypto exchange, and DCG’s Genesis Global Capital unit of failing to disclose to investors the risks of a crypto-lending program they started in 2021. The venture’s assets collapsed last year amid several high-flying bankruptcies, including Sam Bankman-Fried’s FTX. 

“We assure you that we will vigorously defend against these claims and look forward to being vindicated in this case,” DCG said in the investor letter.

DCG also said it had paid $225 million to Genesis, adding that it’s “confident” in its ability to repay remaining agreed-upon debts.

Silbert’s nine-year-old daughter has been diagnosed with cancer and is undergoing treatment, DCG also said in the letter.

©2023 Bloomberg L.P.