Digital Currency Group, a private venture capital firm focused on digital currency, saw its revenue increase by 59% in the fourth quarter, according to a letter to investors published online.
The company, whose subsidiaries include Foundry, Genesis, and Grayscale Investments, saw its revenues rise to $210 million in the three months ended in December, up from $132 million in the year-ago quarter, per the letter.
This included Grayscale revenues of $156 million and Foundry revenues of $38 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $99 million, up 41% over the third quarter and from an EBITDA loss of $7 million in the fourth quarter of 2022.
Its investment portfolio including tokens, Grayscale trust shares, venture investments and public equities was marked at $975 million as of December 31, 2023, the company said.
The company’s revenues are tied to the performance of the cryptocurrency market which rebounded last year.
Digital Currency Group noted in its shareholder letter that the 4Q average Bitcoin price was up about 101% compared to about $18,000 in the year-ago quarter.
The crypto sector, particularly Bitcoin, has again been boosted by the US approval and launch of exchange-traded funds (ETFs) investing directly in the token Bitcoin on January 11, 2024, with nine US Spot Bitcoin ETFs commencing trading that day.
This included the Grayscale Bitcoin Trust ETF, which was converted from a trust to an ETF.
“With a rally in crypto asset prices that kicked off this year alongside significant milestones reached, including DCG’s repayment of more than $1 billion of debt, and Grayscale’s GBTC beginning to trade as an ETF on NYSE Arca, we're looking ahead to this next chapter for DCG and the future growth of our industry,” Digital Currency Group wrote in its letter to shareholders.