Barry Silbert, once a wealthy investor, is now reportedly broke according to sources close to the situation. Barry, once worth $3 billion, is now worth zero.
The man behind the legend
Barry Silbert is the CEO of Digital Currency Group (DCG), a venture capital firm that has invested in more than 200 companies in the cryptocurrency and blockchain industry, including Coinbase and Coindesk. Forbes estimates Silbert’s current net worth to be $0, despite DCG’s projected revenue of $800 million for 2022. It is unclear what the expected profits or losses of the company are.
Why is Barry Silbert’s net worth zero?
In a letter to investors, Barry pointed out that DCG was $2 billion in debt including a liability to Genesis Global Capital of $575 million due in May 2023 and a promissory note of $1.1 billion due in June 2032. Moreover, DCG has another debt of $350 million borrowed from a small group of lenders.
Forbes estimates that the value of DCG’s liabilities is greater than the fair market value of its assets, and DCG may struggle to sell off its illiquid bets. As a result, Forbes estimates Silbert’s stake in the company to be worth approximately $0
What’s next for Barry Silbert?
The founder of Gemini, Cameron Winklevoss, has given DCG a deadline of January 8th to repay $900 million owed by Genesis to Gemini Earn. This is despite the fact that Genesis, a DCG subsidiary, is reportedly considering filing for bankruptcy and laying off 30% of its workforce.
Genesis is trying to raise $1 billion from Binance and Apollo Global Management although things are not looking good.
Silbert owns around 40% of DCG, which has invested in over 200 mainly crypto companies, including Coinbase and Coindesk
Barry invested in Ethereum Classic (ETC) in 2016. The investment may currently be worth around $100 million, assuming he used the ETC to fund the Ethereum Classic Trust and that no one else invested in the trust. Besides that, he had personal investments in Bitcoin to the tune of $175,000.
“I started buying bitcoin, you know, at probably around seven bucks and my average price of bitcoin was $11,” he says.
If Genesis were to file for bankruptcy, it could potentially have significant consequences for the cryptocurrency industry. Grayscale Trusts may be forced to liquidate, leading to a catastrophic market crash. Grayscale currently owns 643,572 BTC.