News

DCG may sell Coindesk to balance sheet amid a liquidity crisis

Published

1 year ago

January 20, 2023

Crypto media platform CoinDesk is reportedly being considered for a potential sale, as its parent company, Digital Currency Group (DCG), looks to boost its balance sheet.

DCG has reportedly received offers for the crypto news platform that exceed $200 million in recent weeks. The offers come at a 39,900% increase since the purchase price of CoinDesk is about $500,000 in 2016

According to news sources, CoinDesk has reportedly sought the help of investment bankers from the financial advisory firm Lazard who are helping the media platform weigh options including a full or partial sale.

You know, I just realized that Coindesk is for sale. pic.twitter.com/QqmBPOClpu

— Charles Hoskinson (@IOHK_Charles) January 19, 2023

DCG, founded by Barry Silbert, appears to be in a serious financial crisis 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.”

This comes in the midst of other crypto-related financial troubles. According to Bloomberg reports, on Jan 18, another subsidiary of DCG, crypto lending platform 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.

Genesis and CoinDesk are reportedly among some 200 crypto-related businesses in DCG’s venture capital portfolio according to the firm’s website.

Other companies that DCG owns include asset management firm Grayscale Investments, crypto exchange Luno, and advisory firm Foundry

It is generally believed 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.