(Bloomberg) -- Digital Currency Group, whose unit Grayscale Investments LLC manages the world’s biggest Bitcoin fund, posted a 59% increase in revenue during the fourth quarter.
Consolidated revenue rose to $210 million in the three-month period compared with $132 million a year earlier, according to a letter to investors seen by Bloomberg News. The Stamford, Connecticut-based private company said EBITDA — or earnings before interest, taxes, depreciation and amortization — came in at $99 million.
DCG’s revenues turn largely on the fortunes of the crypto market, which has more than doubled since the start of last year. Bitcoin, in particular, has been boosted by the launch of the first US exchange-traded funds investing directly in the token after years of industry efforts to overcome skeptical regulators.
Nine new US spot Bitcoin ETFs began trading Jan. 11 and have attracted over $9 billion of investor inflows so far. The more than decade-old Grayscale Bitcoin Trust converted into an ETF the same day. Investors have pulled more than $6 billion from the Grayscale vehicle but the pace of outflows has slowed.
DCG’s crypto lending division Genesis filed for bankruptcy just over a year ago, one of many casualties of the 2022 crypto bear market. DCG is fielding a lawsuit from New York Attorney General Letitia James in the fallout of that collapse.
At the end of 2023, DCG’s investment portfolio — including tokens, Grayscale trust shares, venture and fund investments, and stocks — was marked at about $975 million, according to the investor letter. A spokesperson for DCG declined to comment on the document.
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