Ether dropped 1.4 per cent to around $1,631 but is 36 per cent year-to-date

Bitcoin and ether tumbled on Tuesday, as crypto giant Digital Currency Group reportedly has been selling shares in a number of crypto trusts at a deep discount, as it attempts to raise money to repay creditors of its bankrupt lending arm Genesis.

The biggest crypto currency dropped 0.7 per cent Tuesday to nearly $22,911, after recovering 38 per cent so far this year, as per CoinDesk data. Ether shed 1.4 per cent to nearly $1,631 but is 36 per cent YTD.

DCG has been offloading shares in a number of crypto trusts run by its subsidiary Grayscale, with a focus on the ethereum trust, as per a Monday report by the Financial Times (FT).

It is one of DCG’s latest efforts to raise money to help Genesis repay more than $3.5 billion to its creditors. DCG is the parent company as well as a debtor to Genesis.

DCG has sold nearly a quarter of its shares in the Grayscale ethereum trust to raise $22 million in several trades since January 24, as per the FT report citing U.S. securities filings.

This is simply part of our ongoing portfolio rebalancing, DCG told the FT.

Digital Currency Group has also been selling smaller blocks of shares in Grayscale’s Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust and Digital Large Cap Fund, according to the report.

Still, the prices of bitcoin and ether have been relatively steady, said John Haar, MD at Swan bitcoin and a Goldman Sachs veteran. It shows that Digital Currency Group’s sale has been mostly priced in, Haar said.

DCG has also reportedly hired investment bank Lazard to help sell some of its $500 million venture portfolio.

Genesis said on Monday that the firm and Digital Currency Group reached an agreement in principle with its major creditors. DCG would issue new convertible preferred stocks to exchange its $1.1 billion note due 2032 to Genesis. Digital Currency Group would also refinance its current 2023 loans to Genesis through a new loan in two tranches. The firm also plans to sell the trading arm of Genesis, as per a statement.