Gemini co-founder Cameron Winklevoss reportedly entertained the idea of merging with Digital Currency Group (DCG) and its cryptocurrency lending firm, Genesis Global Capital (GGC), in a bid to create a publicly-listed entity to rival industry giants like Coinbase and FTX.
In an email dated October 2022, DCG’s CEO Barry Silbert claimed that Winklevoss expressed interest in a closer partnership between Gemini, Genesis, and DCG, including the possibility of a merger. Silbert pitched the idea as “super exciting to investors,” suggesting that a potential $1 billion raise could pave the way for a public listing within 24 months.
Silbert envisioned that a combined Gemini and Genesis would become a formidable force in the industry, competitive with major players like Coinbase and FTX. He emphasized the potential for Gemini to emerge as the largest cryptocurrency custody provider globally.
However, GGC was facing significant losses due to overexposure to Three Arrows Capital, amounting to “hundreds of millions.” Despite GGC’s financial woes, Silbert claimed to have been transparent with Winklevoss about the risks involved.
Silbert stressed the importance of collaborative efforts to mitigate risks and prevent a potential bankruptcy scenario for Genesis. He highlighted the need to avoid a bank run, which could jeopardize GGC’s ability to secure replacement liquidity and hinder fundraising efforts for DCG.
Despite discussions and Silbert’s efforts to address concerns, the proposed merger never materialized. The email exchange sheds light on the dynamics between Gemini, Genesis, and DCG during a pivotal period in their operations and strategic planning.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up