Bullish, a blockchain technology company, has acquired CoinDesk in a cash deal from Digital Currency Group.
Bullish, a cryptocurrency exchange, recently acquired CoinDesk, a prominent crypto media outlet. The acquisition is the latest consolidation in the crypto sector, and the financial details of the deal have not been not disclosed. The move follows Digital Currency Group (DCG), decision to sell CoinDesk, which it purchased for $500,000 in 2016.
Under CEO Kevin Worth, CoinDesk will continue to operate independently within Bullish. To ensure editorial independence and integrity, a committee led by Matt Murray will be formed. This move is seen as a way to maintain the journalistic standards that CoinDesk is known for.
Bullish plans to leverage CoinDesk’s data and insights to enhance its trading platform and provide more accurate and timely information to its users. By leveraging CoinDesk’s data and analytics, Bullish aims to become the go-to destination for crypto traders and investors.
Bullish’s acquisition of CoinDesk comes after the company’s cancelled SPAC merger and is part of its efforts to acquire parts of FTX’s business. The move shows a Bullish strategy to position itself in a market that is showing signs of recovery following a period of volatility and turmoil. Bullish investors include notable figures such as Peter Thiel and Louis Bacon.
CoinDesk’s reporting on Alameda Research played a role in exposing the financial issues that led to the FTX crisis. The effects of the FTX crisis are still being felt in the crypto industry, as evidenced by DCG’s Genesis Global Capital filing for bankruptcy. CoinDesk has been at the centre of these significant events, and the acquisition by Bullish highlights its role in the crypto world.
The acquisition of CoinDesk by Bullish was not without competition. An investor group led by Matthew Roszak made a $125 million bid for CoinDesk, but the deal did not go through. Ultimately, Bullish’s acquisition of CoinDesk was successful.
With an annual revenue of approximately $50 million, CoinDesk’s media, events, and indexes sectors are lucrative. The company’s CEO Tom Farley, sees this as an opportunity for Bullish to grow and establish a leading position in the crypto industry. CoinDesk’s influence and reach could give Bullish a competitive edge in the evolving crypto market.