• CoinDesk Inc., a crypto-focused media company, is exploring funding options as its parent company Digital Currency Group (DCG) has run into financial troubles.
• The company has retained investment bankers from Lazard Inc. to help make a decision, which could include a partial or full sale.
• CoinDesk generated $50 million in revenue last year from online advertising and its index and events business.
CoinDesk Inc., a crypto-focused media company, is facing financial troubles as its parent company Digital Currency Group (DCG) has been struggling. In order to help them make a decision, CoinDesk has retained investment bankers from Lazard Inc. The options that are being considered include a partial or full sale.
CoinDesk is well known for its Bitcoin Price Index, which is tracked by the $13.5 billion Grayscale Bitcoin Trust (GBTC). The media outlet generated $50 million in revenue last year from online advertising and its index and events business.
Reports suggest that DCG has received multiple unsolicited offers to sell CoinDesk in the past few months. The interested parties are willing to pay up to $200 million for the media outlet, which was acquired by DCG for $500,000 in 2016.
CoinDesk’s CEO Kevin Worth revealed that there have been numerous inbound indications of interest in CoinDesk over the past few months. He noted that the company has been exploring all options to ensure the best outcome for the company, its partners, and its customers.
The financial troubles of DCG and CoinDesk can be traced back to the collapse of FTX, which was first brought to the public’s attention by CoinDesk. A Nov. 2 report by CoinDesk questioned the health of both FTX and its sister trading firm Alameda Research. This sparked increased scrutiny of the firms, leading to a downward spiral in their performance.
At this time, it is unclear what the outcome of CoinDesk’s exploration of funding options will be. However, the company is looking to ensure the best outcome for its partners, customers, and employees. It remains to be seen how the situation will unfold as it is still in flux.