Interest in acquisition of news site CoinDesk

Last Updated: 30 November 2022

News website CoinDesk may be acquired. There is reportedly plenty of interest in a $300 million acquisition.

Takeover rumour

CoinDesk is part and owned by the Digital Currency Group (DCG). There are reportedly several potential buyers, including private equity firms, family offices and competitors (including Blockworks).

Hedge funds are also said to be interested, but no formal sale process has been initiated (yet), anonymous sources said. The stated amount of $300 million would not be high enough, Semafor said.

CoinDesk caused a stir in the crypto market last month with good journalistic work. Through a leaked document, it became clear that Alameda Research’s balance sheet consisted mainly of FTT tokens. This was the catalyst for a reels of events, starting with the dump by Binance.

Eventually FTX collapsed, proved to be insolvent, hundreds of thousands of customers lost their balances and bitcoin dropped several thousand dollars.

CoinDesk reportedly earns about $50 million a year from advertisements and the conference they organise called Consensus.

A spokesperson for DCG declined to comment on the story.

Umbrella company

Worth noting: CoinDesk is part of DCG. In a letter to shareholders, CEO Barry Silbert spoke of problems with one of the group’s other companies.

Among others, Genesis Trading was affected by the collapse of FTX. They lost nearly $175 million because they had cryptocurrencies listed for derivatives trading. Also, Genesis Global Capital has billions in loans outstanding with other DCG companies.

Meanwhile, Foundry Digital, one of the other companies under the DCG umbrella, did briefly buy up two mining farms from bankrupt Compute North.

  • Gabriele Spapperi

    Gabriele Spapperi is a veteran cryptocurrency investor and blockchain technology specialist. He became fascinated with Bitcoin and distributed ledgers while studying computer science at MIT in 2011.

    Since 2013, Gabriele has actively traded major cryptocurrencies and identified early-stage projects to invest in. He contributes articles to leading fintech publications sharing his insights on blockchain technology, crypto markets, and trading strategies.

    With over a decade of experience in the crypto space, Gabriele provides reliable insights and analysis on the latest developments in digital assets and blockchain platforms. When he's not analyzing crypto markets, Gabriele enjoys travel, golf, and fine wine. He currently resides in Austin, Texas.

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