Crypto News Outlet CoinDesk Hires Bankers for Potential Sale as Parent Company Scampers for Funds

Leading crypto news outlet CoinDesk is contemplating a sale as the financial crisis at its parent company, DCG, worsens.

Human reading a book leaning on crypto coin.
Erratum: The following article was published with a factual error, and was corrected on 2023/01/20 at 07:48 UTC

In the article, it was stated that Coinbase is a subsidiary of Digital Currency Group (DCG).

The statement should have read that Digital Currency Group is the parent company of CoinDesk.

The article has been amended and updated.

One of cryptocurrency’s biggest news outlets, CoinDesk Inc, is reportedly exploring a full or partial sale of its business. It has hired an investment bank to oversee the process.

CoinDesk Could Be on the Market 

CoinDesk is reportedly the latest to be affected by the industry-stifling crypto winter. The crypto news outlet has hired investment bank Lazard Ltd to lead the sale of the company.

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The CEO of CoinDesk, Kevin Worth, has explained that hiring Lizard “is to explore various options to attract growth capital to the CoinDesk business.” The problems at CoinDesk stem from its parent company, Digital Capital Group.

Genesis, another DCG subsidiary, halted withdrawals, which messed with Gemini’s “Earn” program. With Genesis also on the verge of filing for bankruptcy, DCG is looking to sell some of its assets.

The potential sale of CoinDesk, which receives over 10 million visitors per month and organizes the  “Consensus” summit, is bound to impact the crypto industry. 

The problem, however, does not stem from CoinDesk, but from its parent company. The latter looks to strengthen its balance sheet, which means the effects could be minimal.

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While the sale might not have instant consequences, the potential buyer and the direction they would take would definitely affect the crypto community. The Elon Musk Twitter sale is a prime example.

On the Flipside

  • DCG has reportedly received offers exceeding $200 million for CoinDesk in the last few months, despite acquiring the company for just $500,000 in 2016.

Why You Should Care

CoinDesk is contemplating a potential sale despite its solid reputation because of the crisis at its parent company, which could further unsettle the crypto community.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia