Thread by @Selkis_2028

1/ On a recent episode of Unchained's The Chopping Block, @hosseeb makes a surprising comment about the $1.1 billion DCG-Genesis promissory note.

He says the 10 year note may have been structured as "callable" in the event of a Genesis liquidation.

Here's what that would mean:

2/ If true, Genesis could have treated the promissory note as a "current asset" (less than one year duration) even though it was structured as a ten year note.

That would have been a material part of any current assets that Genesis was showing creditors.

3/ It would also do two other things:

+ significantly reduce DCG's ability to limit liability from a Genesis bankruptcy. a callable promissory note would basically be a "you break it, you buy it" situation
+ reduce Genesis's urgency to file bankruptcy as they "have the assets"

4/ This would ALSO reduce the urgency for Genesis creditors to force Genesis into bankruptcy through a notice of default.

The leverage would swing to Genesis creditors as it would be legally cleaner to pull DCG into the bankruptcy over a current asset than a ten year note.

5/ This would make it much more likely that DCG has to pursue a recap vs. Genesis bankruptcy. DCG's odds in bankruptcy court plummet if the promissory note was, in fact, callable.

The lengthy silence could be a sign Genesis creditors are giving DCG time to figure it out.

6/ That brings me back to my point from last week. It seems like this resolution hinges on *where the GBTC shares are currently held.*

If spoken for at Genesis already, not great.

If at DCG, there's a path forward. Tricky, but doable.

7/ Again, this thread is based on an alarming comment from a well-connected investor in this podcast. The analysis of the DCG-Genesis situation now hangs on two material known unknowns:

+ Is the "10 year" DCG promissory note callable?
+ Where's the GBTC?