CoinDesk on sale? parent company DCG under extreme pressure

Share link:

In this post:

  • As parent company DCG struggles to find funds, CoinDesk may be up for purchase.
  • CoinDesk has enlisted the assistance of investment bankers who are assisting the company in weighing possibilities, such as a whole or partial sale.

Cryptocurrency media platform CoinDesk is apparently thinking about a possible sale, as its parent firm Digital Currency Group (DCG) seeks to bolster its balance sheet. 

The Wall Street Journal reports that CoinDesk has enlisted the assistance of investment bankers from the financial consultancy company Lazard, who is assisting the company in weighing possibilities, such as a whole or partial sale.

In recent months, DCG allegedly received many bids for the media company that exceeded $200 million, which would represent a remarkable return on investment given that DCG allegedly bought the business for just $500,000 in 2016.

DCG struggles to get funds

DCG, owned by Barry Silbert, has recently appeared to be experiencing significant financial difficulty. On January 17, the company informed shareholders that it will stop paying dividends in an effort to improve its balance sheet and “preserve liquidity.”

On January 18, Bloomberg reported that another DCG subsidiary, crypto lending company Genesis Global, was preparing to declare bankruptcy after admitting it owed creditors more than $3 billion. This was probably a major component in the financial difficulties that DCG was experiencing at the time.

According to its website, the venture capital portfolio of DCG includes 200 crypto-related companies, including CoinDesk and Genesis. DCG also owns the asset management firm Grayscale Investments, the cryptocurrency exchange Luno, and the advising company Foundry.

Some people think that CoinDesk’s article from November exposing the irregularities in Alameda Research’s balance sheet was the initial domino that eventually led to the demise of cryptocurrency exchange FTX and the liquidity problems that Genesis and its parent company DCG and the larger crypto market are currently experiencing.

Sun, the man behind Tron, recently said that he would be open to investing up to $1 billion in the assets of Digital Currency Group, subject to DCG’s assessment.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Trump vows to end Biden’s crypto crackdown if re-elected
Subscribe to CryptoPolitan