Genesis Trading to Receive Additional Equity Infusion of $140 million.
Genesis Trading will receive an additional equity infusion of $140 million from Digital Currency Group, its parent company, in a bid to strengthen the balance sheet. The funding will boost the company’s position as a global leader in crypto capital markets.
Genesis Trading told clients that the operation of its lending and trading businesses has not been hit by the recent market events, namely FTX’s collapse. But the company has taken steps to strengthen its balance sheet from an additional equity infusion from Digital Currency Group. Genesis will utilize the funds to bolster its position as a global leader in crypto capital markets. The funding will allow it to support its clients and grow demand for its services.
The company also highlighted it has no ongoing lending relationship with FTX or Alameda Research. Genesis Trading revealed in October that its derivatives business had around $175 million worth of funds locked away in an FTX trading account. It has now assured its clients that the millions of dollars locked in Sam Bankman-Fried’s crypto exchange would not impact its market-making activities. However, Genesis Trading had been exposed to the now-bankrupted Three Arrows Capital (3AC) downfall.
Since FTX’s collapse, many companies and firms are distancing themselves from the crypto exchange’s fallout, including Circle, Tether, Coinbase, and Kraken.