Cryptocurrency

CoinDesk could be up for grabs as parent company DCG scrambles for funds

Photo of admin admin Send an email
15 1 minute read

[ad_1]

Crypto media outlet CoinDesk is reportedly considering a potential sale as its parent company Digital Currency Group (DCG) looks to strengthen its balance sheet.

According to the Wall Street Journal, CoinDesk has sought the help of investment bankers from financial advisory firm Lazard, who are helping the firm weigh options including a full or partial sale.

DCG has purportedly received multiple offers exceeding $200 million to buy out the media firm over the last few months, which would result in a phenomenal return on their investment given DCG supposedly acquired the company for just $500,000 in 2016.

Barry Silbert’s DCG appears to be in serious financial strife recently, and announced to shareholders on Jan. 17 that it would be halting dividends in an effort to strengthen its balance sheet and “preserve liquidity.”

On Jan. 18, Bloomberg reported that another DCG subsidiary, crypto lending firm Genesis Global, was planning to file for bankruptcy after revealing it owed creditors over $3 billion — likely a leading factor contributing to DCG’s financial woes.

CoinDesk and Genesis are among some 200 crypto-related businesses in DCG’s venture capital portfolio, according to its website. Other companies that DCG owns include asset management firm Grayscale Investments, crypto exchange Luno, and advisory firm Foundry.

Related: Gemini and Genesis’ legal troubles stand to shake up industry further

Some believe that CoinDesk’s article in November exposing the irregularities in Alameda Research’s balance sheet was the first domino that eventually led to the fall of crypto exchange FTX and the liquidity issues now being faced by Genesis and its parent company DCG and the wider crypto market.

Cointelegraph has reached out to CoinDesk for confirmation that a potential sale was being considered, but was yet to receive an answer at the time of publishing.