$125 million CoinDesk deal may be in its final stages
Date: 2023-07-20 Categories: CRYPT
The $125 million partial sale of cryptocurrency news site CoinDesk could soon be completed, the Wall Street Journal reported on July 20.
The group of investors involved in the sale is reportedly led by Peter Vessenes of Capital6 and Matthew Roszak of Tally Capital, the latter of whom invests in crypto and blockchain startups.
As part of the deal, CoinDesk's parent company Digital Currency Group (DCG) will retain a stake in the site's media, events, data and index business, sources said. They added that the governance structure of CoinDesk is likely to remain unchanged.
Earlier in January 2023, The Wall Street Journal reported that CoinDesk had hired financial services company Lazard to explore the possibility of a partial or full sale. This research comes after DCG received over $200 million in unsolicited offers, though it's largely unclear what other companies were interested in CoinDesk.
Reports in March suggested that Binance and its subsidiary CoinMarketCap planned to acquire CoinDesk, although that deal was also described as "on hold" at the time. Binance CEO Changpeng Zhao later stated that his firm would not be purchasing the March 14 publication.
DCG itself acquired CoinDesk in 2016 for about $500,000.
Deal pending amid DCG crisis
CoinDesk's financial performance remained strong throughout the negotiations. During 2022, the company reportedly generated $50 million in revenue from its online advertising, index services, and event business.
However, the deal runs in parallel with DCG's wider struggles. The credit arm of Genesis Global Capital, a subsidiary of DCG, filed for bankruptcy in January.
Gemini also recently sued Genesis for allegedly hiding its insolvency amid the collapse of one borrower, Three Arrows Capital. Gemini and Genesis together offered the now-defunct Earn interest service, and so a long-running dispute between the companies prevented clients from accessing their funds.
In recent months, Digital Currency Group has also closed its institutional trading platform TradeBlock and asset management arm HQ Digital.
The group of investors involved in the sale is reportedly led by Peter Vessenes of Capital6 and Matthew Roszak of Tally Capital, the latter of whom invests in crypto and blockchain startups.
As part of the deal, CoinDesk's parent company Digital Currency Group (DCG) will retain a stake in the site's media, events, data and index business, sources said. They added that the governance structure of CoinDesk is likely to remain unchanged.
Earlier in January 2023, The Wall Street Journal reported that CoinDesk had hired financial services company Lazard to explore the possibility of a partial or full sale. This research comes after DCG received over $200 million in unsolicited offers, though it's largely unclear what other companies were interested in CoinDesk.
Reports in March suggested that Binance and its subsidiary CoinMarketCap planned to acquire CoinDesk, although that deal was also described as "on hold" at the time. Binance CEO Changpeng Zhao later stated that his firm would not be purchasing the March 14 publication.
DCG itself acquired CoinDesk in 2016 for about $500,000.
Deal pending amid DCG crisis
CoinDesk's financial performance remained strong throughout the negotiations. During 2022, the company reportedly generated $50 million in revenue from its online advertising, index services, and event business.
However, the deal runs in parallel with DCG's wider struggles. The credit arm of Genesis Global Capital, a subsidiary of DCG, filed for bankruptcy in January.
Gemini also recently sued Genesis for allegedly hiding its insolvency amid the collapse of one borrower, Three Arrows Capital. Gemini and Genesis together offered the now-defunct Earn interest service, and so a long-running dispute between the companies prevented clients from accessing their funds.
In recent months, Digital Currency Group has also closed its institutional trading platform TradeBlock and asset management arm HQ Digital.
