Home CryptocurrencyAltcoin CoinDesk could be up for grabs as parent company DCG raises funds

CoinDesk could be up for grabs as parent company DCG raises funds

by SuperiorInvest

Crypto media outlet CoinDesk is reportedly considering a potential sale as its parent company Digital Currency Group (DCG) seeks to strengthen its balance sheet.

According to the Wall Street Journal, CoinDesk has was looking for with the help of investment bankers from the financial consulting firm Lazard, who help the company consider options, including a full or partial sale.

DCG has reportedly received several offers in excess of $200 million to buy the media firm over the past few months, which would result in a phenomenal return on their investment, as DCG reportedly acquired the company for just $500,000 in 2016.

Barry Silbert’s DCG appears to be in serious financial strife recently, announcing to shareholders on January 17 that would stop dividends in an effort to strengthen its balance sheet and “preserve liquidity.”

On January 18, Bloomberg reported that another DCG subsidiary, crypto-lending firm Genesis Global, was plans to file for bankruptcy after its discovery owed creditors over $3 billion — probably a major contributing factor to DCG’s financial woes.

CoinDesk and Genesis are among about 200 cryptocurrency-related companies in DCG’s venture capital portfolio, according to its website. Other companies DCG owns include asset management firm Grayscale Investments, crypto exchange Luno and consultancy Foundry.

Related: The Gemini and Genesis legal woes continue to rock the industry

Some believe that a November CoinDesk article exposing irregularities in Alameda Research’s balance sheet was the first domino that ultimately led to the collapse of the FTX crypto exchange and the liquidity problems now facing Genesis and its parent company DCG and the broader crypto market.

Cointelegraph asked CoinDesk for confirmation that a potential sale was being considered, but had not yet received a response at the time of publication.

Source Link

Related Posts

%d bloggers like this: