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Barry Silbert, the founder of crypto conglomerate Digital Currency Group, has joined a growing list of industry leaders in trying to settle investors’ nerves after the sudden collapse of FTX.

In a note to shareholders on Tuesday, Silbert addressed all the “noise” about the financial health of DCG’s subsidiaries, which includes trading firm Genesis, Grayscale Investments and mining company Foundry.

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Since FTX’s rapid winddown two weeks ago, investors have worried about a crypto contagion affecting every corner of the industry. Lenders have stopped lending, withdrawals have been more difficult and unregulated, little-understood tokens have plunged in value. The leading cryptocurrencies, bitcoin and ether, have also continued their year-long descent.

Silbert, an early bitcoin evangelist who founded DCG in 2015, said that despite the crypto winter, the overall company is on pace to generate $800 million in revenue this year on the back of just $25 million raised in primary capital since inception. Forbes estimates Silbert’s net worth at $2 billion.

“We have weathered previous crypto winters,” Silbert wrote, adding that “while this one may feel more severe, collectively we will come out of it stronger.” 

CoinbaseBinance and Crypto.com have similarly done their best to assuage customer concerns to avoid an FTX-type run on customer deposits. They’ve each expressed shock at FTX’s apparent deceit of investors and customers and emphasized that client assets are secure.

That’s all with an awareness that FTX and founder Sam Bankman-Fried betrayed the trust of an industry that was already in the midst of a brutal year of losses. Bankman-Fried said his company’s assets were “fine” two days before he was desperate for a rescue because of a liquidity crunch.

Specific to DCG, investor confidence took a hit in the last week, when the Wall Street Journal reported that Genesis had been trying to raise $1 billion from investors before ultimately halting some withdrawals. There were reports that Genesis would soon file for bankruptcy, which the company publicly refuted.

Fear spread to the Grayscale Bitcoin Trust, known by its ticker GBTC, which lets investors get access to bitcoin through a more traditional security. GBTC is currently trading at a 42% discount to bitcoin, up from a discount of closer to 30% two months ago.

Regarding Genesis’ lending business, Silbert said in the letter that the suspension of redemptions and new loan originations on Nov. 16 was “an issue of liquidity and duration mismatch” in the loan book. These issues, he said, had “no impact” on Genesis’ spot and derivatives trading or custody businesses, which “continue to operate as usual.”

He acknowledged that Genesis has hired financial and legal advisors, as the firm considers its options.

DCG’s debts amount to just over $2 billion. The company loaned Genesis roughly $575 million, priced at “prevailing market interest rates,” which is due in May 2023. It also absorbed the $1.1 billion debt that the bankrupt crypto hedge fund Three Arrows Capital owed Genesis.

With Three Arrows in bankruptcy, DCG “is pursuing all available remedies to recover assets for the benefit of creditors,” Silbert wrote. DCG’s only other debt is a $350 million credit facility from “a small group of lenders led by Eldridge.”

Read the full letter from Silbert below:

Dear Shareholders, 

There has been a lot of noise over the past week and I want to get in touch directly to clarify where we stand at DCG.

Most of you are aware of the situation at Genesis, but to recap up front: Genesis Global Capital, Genesis’ lending business, temporarily suspended redemptions and new loan originations last Wednesday, November 16 after market turmoil sparked unprecedented withdrawal requests.  This is an issue of liquidity and duration mismatch in the Genesis loan book.  Importantly, these issues have no impact on Genesis’ spot and derivatives trading or custody businesses, which continue to operate as usual.  Genesis leadership and their board decided to hire financial and legal advisors and the firm is exploring all possible options amidst the fallout from the implosion of FTX.

In recent days, there has been chatter about intercompany loans between Genesis Global Capital and DCG.  For those unaware, in the ordinary course of business, DCG has borrowed money from Genesis Global Capital in the same vein as hundreds of crypto investment firms.  These loans were always structured on an arm’s length basis and priced at prevailing market interest rates.  DCG currently has a liability to Genesis Global Capital of ~$575 million, which is due in May 2023.  These loans were used to fund investment opportunities and to repurchase DCG stock from non-employee shareholders in secondary transactions previously highlighted in quarterly shareholder updates.  And to this day, I’ve never sold a share of my DCG stock.

You may also recall there is a $1.1B promissory note that is due in June 2032.  As we shared in our previous shareholder letter in August 2022, DCG stepped in and assumed certain liabilities from Genesis related to the Three Arrows Capital default.  As stated in August, because these are now DCG liabilities, DCG is participating in the Three Arrows Capital liquidation proceedings on the Creditors’ Committee and is pursuing all available remedies to recover assets for the benefit of creditors.  Aside from the Genesis Global Capital intercompany loans due in May 2023 and the long-term promissory note, DCG’s only debt is a $350M credit facility from a small group of lenders led by Eldridge.

Taking a step back, let me be crystal clear: DCG will continue to be a leading builder of the industry and we are committed to our long-term mission of accelerating the development of a better financial system.  We have weathered previous crypto winters and while this one may feel more severe, collectively we will come out of it stronger.  DCG has only raised $25M in primary capital and we are pacing to do $800M in revenue this year.

I bought my first bitcoin a decade ago in 2012 and made the decision that I would commit to this industry for the long term.  In 2013, we founded the first BTC trading firm – Genesis – and the first BTC fund, which evolved into Grayscale, now the world’s largest digital currency asset manager.  Foundry runs the largest bitcoin mining pool in the world and is building tomorrow’s decentralized infrastructure.  CoinDesk is the industry’s premier media, data, and events company and they have done phenomenal work covering this crypto winter.  Luno is one of the most popular crypto wallets in the world and is an industry leader in the emerging markets.  TradeBlock is building a seamless institutional trading platform and as the newest subsidiary, HQ is establishing a life and wealth management platform for digital asset entrepreneurs.  Each of these subsidiaries are standalone businesses that are independently managed and are operating as usual.  Lastly, with a portfolio of 200+ companies and funds, we’re often the first check for the industry’s best founders. 

We appreciate the words of encouragement and support, along with offers to invest in DCG.  We will let you know if we decide to do a financing round.

Despite the difficult industry conditions, I am as excited as ever about the potential for cryptocurrencies and blockchain technology over the coming decades and DCG is determined to remain at the forefront. 

Barry

WATCH: Grayscale files lawsuit against SEC over bitcoin ETF denial

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The ticket bot cometh: cities are ticketing drivers that AI says are bad [update]

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The ticket bot cometh: cities are ticketing drivers that AI says are bad [update]

In a high-tech move that we can all get behind and isn’t dystopian at all, the City of Barcelona is feeding camera data from its city buses into an advanced AI, but they swear they’re not using the footage to to issue tickets to bad drivers. Yet.

UPDATE 06DEC2025: the ticket bot cometh to Chicago.

Last month, the Chicago Transit Authority (CTA) contracted with Hayden AI to equip six of its transit buses with AI-powered license plate readers intended to target illegally parked vehicles in an area bound by North Avenue, Roosevelt Road, Lake Michigan and Ashland Avenue.

As with similar pilots in Barcelona and NYC, the Hayden AI technology captures information from vehicles illegally blocking bus and bike lanes, then submits its “findings” to a human reviewer for confirmation. If the reviewer agrees with the AI, they can issue a fine of $90 for parking in a bus lane, $250 for bike lane obstruction, $50 for parking in expired meters outside of the central business district, and $140 for personal vehicles parked in commercial loading zones.

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Despite those hefty fines, Chicago Mayor Brandon Johnson is quick to point out that the goal of the program isn’t to generate revenue.

“Every Chicagoan deserves a transportation system that is safe, reliable, and efficient,” said Mayor Johnson, in a statement. “By keeping bus and bike lanes clear of illegally parked vehicles, the Smart Streets pilot helps us protect our most vulnerable road users while improving the daily commute for riders across the city.”

The official release makes no mention of the fact that Hayden AI’s system generated nearly $21 million in revenue for the city in just a few months, despite the fact that thousands of those ticketed weren’t doing anything wrong.

We wrote about some of these issues back in Jun. You can read that original article, below, and let us know what you think of Chicago’s “non-revenue” claims in the comments.


Barcelona launches automated bus lane and bus stop enforcement pilot with Hayden AI
Barcelona ticketing AI; via Hayden AI.

Barcelona and its Ring Roads Low Emission Zone have earned lots of fans by limiting ICE traffic in the city’s core. The city’s latest idea to promote mass transit is the deployment of an artificial intelligence system developed by Hayden AI for automatic enforcement of reserved lanes and stops to improve bus circulation – but while it seems to be working as intended, it’s raising entirely different questions.

“Bus lanes are designed to help deliver reliable, fast, and convenient public transport service. But private vehicles illegally using bus lanes make this impossible,” explains Laia Bonet, First Deputy Mayor, Area for Urban Planning, Ecological Transition, Urban Services and Housing at the Ajuntament de Barcelona. “We are excited to partner with Hayden AI to learn where these problems occur and how they are impacting our public transport service.”

Currently operating as a pilot program on the city’s H12 and D20 bus lines, the system uses cameras installed on the city’s electric buses to detect vehicles that commit static violations in the bus lanes and stops (read: stopping or parking where you shouldn’t). The Hayden AI system then analyses that data and provides statistical information on what it captures while the bus is driving along on its daily route.

Hayden AI says that, while it photographs and records video sequences and collects contextual information of the violation, its cameras do not record license plates or people and no penalties are being issued to drivers or owners of the vehicles.

So far so good, right? But it’s what happens once the six mont pilot is over that seems like it should be setting off alarm bells.

Big Brother Bus is watching


“You are being recorded” sign in a bus; via Barcelona City Council.

The footage is manually reviewed by a Transports Metropolitans de Barcelona (TMB) officer, who reportedly reviewed some 2,500 violations identified by AI in May alone. But, while the system isn’t being used to issue violations during the pilot program, it easily could.

And, in fact, it already has … and the AI f@#ked up royally.

AI writes thousands of bad tickets


NYC issued hundreds of thousands of tickets; via NBC.

When AI was given the ability to issue citations in New York City earlier this year, it wrote more than 290,000 tickets (that’s right: two-hundred and ninety thousand) in just three months, generating nearly $21 million in revenue for the city. The was just one problem: thousands of those drivers weren’t doing anything wrong.

What’s more, the fines generated by the AI powered cameras were supposed to be approved only after being verified by a human, but either that didn’t happen, or it did happen and the human operator in question wasn’t paying attention, or (maybe the worst possibility) the violations were mistakes or hallucinations, and the human checker couldn’t tell the difference.

In OpenAI’s tests of its newest o3 and o4-mini reasoning models, the company found the o3 model hallucinated 33% of the time during its PersonQA tests, in which the bot is asked questions about public figures. When asked short fact-based questions in the company’s SimpleQA tests, OpenAI said o3 hallucinated 51% of the time. The o4-mini model fared even worse: It hallucinated 41% of the time during the PersonQA test and 79% of the time in the SimpleQA test, though OpenAI said its worse performance was expected as it is a smaller model designed to be faster. OpenAI’s latest update to ChatGPT, GPT-4.5, hallucinates less than its o3 and o4-mini models. The company said when GPT-4.5 was released in February the model has a hallucination rate of 37.1% for its SimpleQA test.

FORBES

I don’t know about you guys, but if we had a local traffic cop that got it wrong 33% of the time (at best), I’d be surprised if they kept their job for very long. But AI? AI has a multibillion dollar hype train and armies of undereducated believers talking about singularities and building themselves blonde robots with boobs. And once the AI starts issuing tickets to the AI that’s driving your robotaxi, it can just call its buddy AI the bank to send over your money. No human necessary, at any point, and the economy keeps on humming.

But, like – I’m sure that’s fine. Embrace the future and all that … right?

SOURCES: Hayden AI, via Chicago Sun Times, Forbes, Motorpasión.


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Kubota, Kilter to partner on next-generation autonomous farm robot

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Kubota, Kilter to partner on next-generation autonomous farm robot

The Japanese agriculture equipment experts Kubota are partnering with Norwegian tech startup Kilter to co-develop, pilot, and promote the new Kilter AX-1 ultra high-precision weeding robot across Europe.

The collaboration will initially target Kubota’s vegetable growing customers in Germany and the Netherlands, specifically farmers growing spinach, salad lettuces, herbs, celeriac, and strawberries who hope to benefit of higher yields and crop quality while cutting the use of chemical pesticides to an absolute minimum.

To accomplish those goals, the Kilter AX-1 uses a patented tech package it calls “Single Drop Technology.” Single Drop Technology combines AI weed recognition and ~6 mm placement accuracy to deliver micro-doses directly to weeds, protecting the crop and minimizing the impact to the surrounding soil.

Getting that 6 mm droplet application wasn’t easy. “You can’t buy a field-ready droplet applicator off the shelf,” Anders Brevik, CEO of Kilter, told AgTechNavigator. “We had to design one that survives years of dust, vibration, temperature swings, and long operating days, while keeping droplet size, timing, and placement consistent. That takes deep agronomy knowledge, a lot of engineering, and thousands of hours of field testing.”

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Kilter says growers can reduce herbicide use by up to 95% by adopting the new AX-1, shifting selectivity from chemistry to smart application.

Kubota Europe’s Smart Farming Solutions Division, launched back in 2024, is working with the company’s European dealer network to train up sales staff and integrate the Kilter robot into Kubota’s broader farm solutions portfolio. There’s no word, yet, on pricing or if/when we’ll get the Kilter in North America.

Electrek’s Take


AX-1 robot; by Kilter, via AgTechNavigator.

Kubota has been bringing literal tons of electrified and autonomous ag solutions to shows like CES for the past few years, and they’ve made significant waves there. With partnerships that take the sustainability push beyond decarbonization and into the realms of de-chemicalizing (that’s a word) and pro-pollenatoring (another word), they’re making real steps towards a more sustainable future for agriculture.

SOURCES | IMAGES: Kilter, AgTechNavigator.


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The future of electric farming is taking shape at John Deere [video]

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The future of electric farming is taking shape at John Deere [video]

Energy independence and cost control are top of mind for farmers, and more companies are rolling out electric equipment that can be charged by solar, wind, or even on-farm biogas. With the debut of its latest next-generation electric tractor at Agritechnica last month, John Deere is signaling that it intends to lead that revolution.

John Deere says the E-Power electric tractor prototypes that it’s been quietly teasing since 2022 will be as quiet as a car, as easy to drive as a golf cart, and require minimal upkeep – and all while providing the same performance as the company’s beloved diesel tractors.

“Our goal with the E-Power tractor is to ensure it performs the same jobs as its diesel counterparts and works with the same implements, while unlocking incremental value,” explains Derek Muller, business manager for battery electric vehicle systems at John Deere. “Through our electric lineup, we’ll look to reduce operational and maintenance costs, deliver powerful and reliable performance, and intuitive operation.”

The latest electric John Deere tractor prototype, recently unveiled at Agritechnica, is equipped with a 100 hp drive motor and two, additional motors. One 130 continuous hp electric motor for the PTO, and a third for the hydraulic pump. They’ll draw power from up to five KREISEL li-ion battery packs, allowing customers significant pricing flexibility based on their ability to determine how much power and run time they need (and are willing to pay for) to get their jobs done.

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Electric John Deere tractor


130 hp electric tractor shown at Agritechnica; by John Deere.

The customization will go well beyond just battery size. Deere plans to offer customers a number of different tractor and equipment options, and keep costs competitive by basing them on a vehicle common architecture.

“John Deere aims to develop a single electric concept that customers can configure to their own needs,” writes Bob Karsten, at Future Farming. “Buyers will be able to choose the number of batteries (up to five, totalling 195 kWh), the axle type (narrow or wide track), and the cab (either an orchard cab or the familiar 5M cab). In essence, buyers select their preferred battery capacity. With the largest battery (195 kWh), the tractor can operate for eight hours. The target is to enable fast charging up to 80% in 30 minutes.”

Deere revealed one version of that upcoming electric tractor (above) at Agritechnica last week, but despite being an early prototype, it’s a fully functional piece that’s already seen duty with some of John Deere’s most trusted customers.

  • Daniel, an orchard customer from California, said his experience with the electric tractor led him to believe it could help ease training new operators, “I do think the tractor is much easier for drivers to understand it and to drive it. It would take less time to teach them [operators] how to use it.”
  • Tyler, a vineyard customer in California, believes that a new electric tractor could help his operation meet its sustainability goals, “When we look at our carbon footprint, greenhouse gas emissions, we want to try and reduce those as we run our equipment to farm our vineyards, we want to be conscious of the community at large.”

There’s no official word yet on when the new John Deere electric tractor platform will start reaching customers, but Big Green’s recent purchase of battery manufacturer KREISEL and its continued push into more global markets means that it can’t afford to take things slow.

You can check out a quick, virtual walkaround of John Deere’s E-Power electric tractor concept in this (admittedly older) video released around the ACT Expo, and expect more details and possible configurations at the upcoming CON/AGExpo conference in March.

John Deere E-Power configurations


SOURCE | IMAGES: John Deere.


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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.

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