2023-07-21 16:39:50
Investment groups are acquiring a part of CoinDesk following its parent company, Digital Currency Group, decided to partially sell the crypto news portal. The Wall Street Journal reported on July 20 that the $125 million deal might close soon. According to some reports, the investment involves Capital6 and Tally Capital, which previously made headlines by shifting investment funds into cryptocurrency and blockchain startups. CoinDesk’s parent company, Digital Currency Group, will continue to manage the site’s media content, events, data and indexes, according to sources. CoinDesk’s governance structure will also remain unchanged. Earlier in January 2023, the Wall Street Journal reported that CoinDesk had asked financial services provider Lazard to explore the possibility of a partial or full sale. This comes following DCG received offers worth $200 million, although it remains unclear exactly from whom. In March, it was reported that Binance and its subsidiary, CoinMarketCap, showed interest in CoinDesk, but no significant progress was made in the matter. Changpeng Zhao, CEO of the exchange, later stated that they would not buy the news portal. We previously wrote on the topic: It is increasingly likely that CoinDesk will be sold DCG can still pocket a nice profit, as it bought CoinDesk for $500,000 in 2016. DCG in crisis CoinDesk’s financial performance remains controversial. The company reportedly generated $50 million in revenue in 2022 from online , indexing, and events. Nevertheless, DCG has been facing serious problems since the outbreak of the FTX bankruptcy. Its lending subsidiary, Genesis Global Capital, filed for bankruptcy back in January. In connection with the case, Gemini also sued the company for concealing its insolvency from one of its clients, Three Arrows Capital. Gemini and Genesis jointly offered the defunct Earn interest-bearing service, and the protracted legal dispute between them made it impossible for users to access their funds. Digital Currency Group also previously had to shut down its institutional trading platform, TradeBlock. Its asset management division, HQ Digital, also suffered the same fate in recent months.
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