If DCG is the entity that owes the money to Genesis, then it will not be able to cut off Genesis and continue operating DCG and more importantly Grayscale
It is rumored that Digital Currency Group, the company that owns Genesis, owes $1 billion to Genesis. If this is true, then DCG will not be able to continue operating Grayscale. Grayscale is a subsidiary of DCG, which means all of its assets can be garnished. If Grayscale is unwound, it will release significant selling pressure into the market.