Digital Currency Group (DCG), the parent company of CoinDesk, has announced that its Chief Financial Officer (CFO), Michael Kraines, has resigned from his position. Kraines had been serving as the CFO for the past two years. In a letter to shareholders, DCG revealed that it has engaged the services of Heidrick & Struggles to search for a new CFO. In the interim period, DCG’s President, Mark Murphy, and Chief Strategy Officer, Simon Koster, will be managing the finance department.
During the first quarter of this year, DCG reported a 63% increase in revenue to $180 million from the fourth quarter of 2022, as crypto prices surged. However, the revenue is still lower compared to the previous year’s figures. The company also reported a $6 million loss last quarter based on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
DCG was severely impacted by the crypto market’s collapse last year, with its Genesis lending division ending up in bankruptcy court. As a result, the company lost $1.1 billion in 2022, citing the restructuring of Genesis and plunging crypto prices.
Despite the challenges, DCG remains optimistic about its future. Based on its first-quarter performance, the company expects to generate revenue and EBITDA of approximately $620 million and $140 million, respectively, by the end of 2023, excluding the Genesis business, which remains in Chapter 11. The company’s efforts to repay a $350 million senior secured term loan during the first quarter demonstrate its commitment to reducing its debt load and strengthening its financial position.
