Crisis at parent company DCG: crypto news outlet CoinDesk has sales checked

taketonews

• DCG in financial difficulties
• CoinDesk sale could offer a way out
• Financial advisory firm Lazard to explore options

The bankruptcy of the crypto exchange FTX has triggered a domino effect in the industry, which also threatens Genesis and the Digital Currency Group, among others. Because the failure of FTX has exacerbated the problems of the crypto investment company DCG. As a result, DCG decided in mid-January to temporarily suspend dividend payments to its shareholders. In addition, the DCG subsidiary Genesis Global has meanwhile initiated insolvency proceedings.

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Sale of CoinDesk

Crypto investment firm DCG has significant investments in more than 200 crypto companies, including crypto lender Genesis, asset manager Grayscale Investments, crypto exchange Luno and crypto news outlet CoinDesk. In order to get its finances in order, DCG could now sell CoinDesk. According to media reports, CoinDesk has already invested in the investment bank Lazard Ltd. engaged as a consultant and tasked with examining the possible options for a full or partial sale and, if necessary, organizing takeover negotiations.

“In the last few months we have received numerous indications of interest in CoinDesk,” CoinDesk CEO Kevin Worth is quoted as saying by Blockzeit. He further stated, “My goal in engaging Lazard is to explore various options to raise growth capital for the CoinDesk business, which may include a partial or full sale.”

According to several media reports, Barry Silbert’s Digital Currency Group has already received several offers of over 200 million US dollars for CoinDesk in the past few months. With that, she could knock off the media company with an enormous profit, after all, she had acquired CoinDesk in 2016 for just about 0.5 million US dollars.

Charles Hoskinson, the founder of Cardano (ADA), has already expressed interest in an acquisition. A quick deal – if it happens at all – is unlikely, however, because the 35-year-old, whose fortune is estimated at over $600 million, also said that he thought the $200 million price tag was too high holds.

CoinDesk uncovered FTX inconsistencies

CoinDesk is based in New York and was founded in 2013. According to the crypto news website, it employs more than 50 crypto journalists and has over 13 million monthly readers.

Ironically, CoinDesk of all companies first reported on dubious transactions between FTX and Alameda Research in November 2022 and has exclusively published internal documents from the two companies. This initiated the collapse of Sam Bankman-Fried’s corporate network.

Editorial office finanzen.net

Image sources: wael alreweie / Shutterstock.com, Pasuwan / Shutterstock.com



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