Digital Currency Group (DCG), a leading crypto conglomerate, has reported a significant increase in revenue, thanks to the recent resurgence in cryptocurrency prices. According to a letter shared with The Block, DCG's consolidated revenue grew to $229 million in the first quarter, a 51% increase from the same period last year.

Each of DCG's subsidiaries, including crypto exchange Luno, bitcoin mining firm Foundry, and crypto asset manager Grayscale, saw profits in the first quarter, driven by the bounceback in cryptocurrency prices. Grayscale generated $156 million in revenue, largely due to the surge in bitcoin price, while Foundry earned $51 million from staking and equipment sales, and Luno took in $16 million due to higher trading volumes amid greater price volatility.

The revenue growth marks a significant turnaround for DCG, which faced financial and legal challenges in the past two years, including the bankruptcy of its subsidiary Genesis and legal battles with the New York Attorney General's Office and Gemini co-founders Tyler and Cameron Winklevoss. The company sold off news site CoinDesk to crypto exchange Bullish in November to stem some of its losses.

The crypto market's recovery, which saw bitcoin's price hit an all-time high of roughly $73,000 in March, has been driven by positive market events, including the approval of several spot-bitcoin ETFs, including the DCG-owned Grayscale Bitcoin Trust ETF (GBTC). Despite facing competition from other ETFs, Grayscale's ETF closed the first quarter with 26.5% of the spot bitcoin ETF market.