- July 20, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
A partial sale of the crypto news site CoinDesk valued at $125 million could soon be completed, the Wall Street Journal reported on July 20.
The investor group reportedly involved in the sale is said to be headed by Peter Vessenes of Capital6 and Matthew Roszak of Tally Capital, the latter of which is focused on investments in cryptocurrency and blockchain startups.
Sources said that CoinDesk’s parent company, Digital Currency Group (DCG), would keep a stake in the site’s media, events, data, and index business under the deal. They added that CoinDesk’s management structure would likely remain unchanged.
Earlier, in January 2023, The Wall Street Journal reported that CoinDesk had recruited the financial services company Lazard to explore the possibility of a partial or total sale. That exploration occurred after DCG received unsolicited offers in excess of $200 million, though it is largely unclear what other companies had an interest in CoinDesk.
Reports in March suggested that Binance and its subsidiary CoinMarketCap planned to acquire CoinDesk, though that deal was also described as “on hold” at that time. Binance CEO Changpeng Zhao later said his firm would not buy the publication on March 14.
DCG itself acquired CoinDesk in 2016 for approximately $500,000.
Deal is pending amidst DCG crisis
CoinDesk’s financial performance has remained strong throughout negotiations. The company reportedly generated $50 million in revenue over the course of 2022 from its online advertising, index services, and events business.
However, the deal is underway alongside DCG’s broader struggles. The lending arm of DCG’s subsidiary, Genesis Global Capital, filed for bankruptcy in January.
Gemini also recently sued Genesis for allegedly hiding its insolvency amidst the collapse of one borrower, Three Arrows Capital. Gemini and Genesis offered the now-defunct interest-bearing Earn service together, and as such, the prolonged dispute between companies has prevented customers from gaining access to their funds.
Digital Currency Group has also closed its institutional-trading platform, TradeBlock, and its wealth management unit, HQ Digital, in recent months.
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