Digital Currency Group’s Risky Bitcoin Short Could Lead To Default On $575 Million Debt
Digital Currency Group (DCG) is facing a significant financial challenge, with a debt of approximately $575 million owed to Genesis in May. This debt, incurred through one of three loans used to short Bitcoin, has increased, creating a scenario of default risk for DCG.
The whole sorry saga reads like a comedy of errors. Reminds me, many years ago I came across an article that asked: why do so many stellar traders suddenly turn to duds after being lured to a new trading firm? The sad answer was that a large part of a shining portfolio is down to pure luck. Not all, but in a game of fine margins, an edge is all one needs - even if that edge is a large slice of good fortune!
And these people have bits of paper that certify they are gilt-edged fund managers. The opposite, however, is the norm.
Never forget lady luck.
Which then begs the question of how long it takes for her charms to desert you?