The Dutch cryptocurrency exchange Battle has in one update good news shared. In addition to reassuring its customers that it has solid reserves, Bitvavo also announces that Digital Currency Group (DCG) is able to repay its debt to the exchange.
Bitvavo guarantees the debt
The update comes shortly after the news that DCG and cryptocurrency lending platform Genesis have announced a debt of approximately 280 million euros have at Bitvavo. The Dutch stock exchange used this holiday for its customers staking outreturns to offer.
However, DCG has faced liquidity problems which have forced it to suspend its payments to third parties. As a result, 280 million euros from Bitvavo, among other things, are attached to DCG. Cryptocurrency exchange Gemini even has $900 million tied to the party.
In the recent Bitvavo update you can read that the cryptocurrency exchange guarantees the customers’ assets. So if the 280 million euros don’t add up, Bitvavo will take the hit. This was already known. Now, however, the platform is also sharing concrete numbers.
Cryptocurrency exchange Bitvavo made a profit of 250 million euros
It can absorb that blow with the large profits the platform has made in recent years. Last year alone it made a profit of 173 million euros. In total, this is an amount of 250 million euros. You will be able to check financial health yourself by the end of this year:
“Our solid financial position is also reflected in the annual accounts. This was provided with an unqualified opinion by the accountant on 16 December 2022, taking into account the current situation. The annual accounts can be requested by the end of the year.
In addition to profits, the company also has access to external lines of credit, which can be a lifesaver in such difficult times.
DCG can repay the debt to Bitvavo
Perhaps even better news is the fact that DCG will most likely be able to repay the debt. It was in there before cryptocurrency news read that the creditors involved in this situation, a plan they presented. Under this plan, DCG will be able to repay outstanding debt to all creditors, including Bitvavo. It is not yet known when this will happen.
Read more about this exchange here Bitvavo review brings Crypto Insider.
