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 searched for Support from investment bankers at financial advisory firm Lazard, who are helping the firm weigh options, including a full or partial sale.
You know, I just noticed that Coindesk is for sale. pic.twitter.com/QqmBPOClpu
— Charles Hoskinson (@IOHK_Charles) 19 January 2023
DCG has reportedly received multiple offers in the past few months worth more than $200 million to buy the media firm, which would result in a phenomenal return on investment, provided DCG Conjecture Acquired the company in 2016 for just $500,000.
Barry Silbert’s DCG appears to be in dire financial straits recently, and announced to shareholders on January 17 that it Profits will be withheld In an effort to strengthen its balance sheet and “preserve liquidity”.
On January 18, Bloomberg reported that another subsidiary of DCG, crypto lending firm Genesis Global, Planning to file for bankruptcy After revealing it Debtors owe more than $3 billion. – Possibly a major contributing factor to DCG’s financial woes.
CoinDesk and Genesis are among about 200 crypto-related businesses in DCG’s venture capital portfolio, according to its website. Other companies owned by DCG include asset management firm Greyscale Investments, crypto exchange Luno and advisory firm Foundry.
Related: The legal woes of Gemini and Genesis have further shaken up the industry.
Some believe that a CoinDesk article in November was the first domino to expose the irregularities in Alameda Research’s balance sheet that eventually led to the collapse of crypto exchange FTX and the liquidity problems that now plague Genesis and its core. The company faces DCG and the broader crypto market.
Cointelegraph has contacted CoinDesk to confirm that a potential sale is being considered, but had not yet received a response at the time of publication.
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