Connecticut-based cryptocurrency giant Digital currency group (DCG) on Monday reported a $1.1 billion loss in 2022 on a decline in cryptocurrency prices and the restructuring of genesisits lending platform.

What happened: According to the company’s fourth-quarter investor report, the failure of Three Arrows Capital (3AC) also impacted Genesis, Coindesk reported.

DCG had total assets of $5.3 billion as of December 31, 2022, with cash and cash equivalents of only $262 million.

DCG’s fourth quarter revenue was $143 million on a loss of $24 million and full year consolidated revenue was $719 million.

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Despite the losses, DCG claims to have reached a “milestone” in Genesis’ restructuring and reached a non-binding term sheet agreement with some of its key creditors.

This includes extending DCG’s obligations to Genesis Capital from May 2023 to June 2024, as well as restructuring DCG’s $1.1 billion promissory note due 2032.

In exchange, a new class of DCG Redeemable Convertible Preferred Stock will be issued to Genesis Capital creditors.

Negotiating the final transaction documents and obtaining votes on a reorganization plan is expected to take several months.

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