A group of investors is set to gain control of CoinDesk, a prominent media company focused on cryptocurrency.
Led by Matthew Roszak from Tally Capital and Peter Vessenes from Capital6, the investor syndicate aims to finalize the transaction in the upcoming weeks, as reported by The Wall Street Journal (WSJ) on July 20.
Digital Currency Group (DCG), the parent company of CoinDesk, will retain a stake in the media business, events, data, and indexes, valuing the pending deal at approximately $125 million.
DCG had acquired CoinDesk in 2016 for $500,000 but recently faced financial challenges due to the bankruptcy of its lending arm, Genesis Global Capital, along with the closures of its institutional-trading platform Tradeblock and wealth-management unit HQ.
These issues occurred amidst a broader downturn in the crypto industry, marked by successive bankruptcies and a significant drop in token prices last year.
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CoinDesk generated $50 million in revenue the previous year, primarily from online advertising, events, and indexes.
Despite its financial success, the company had been exploring the possibility of selling itself earlier in the year.
CoinDesk CEO Kevin Worth revealed that the company had engaged investment bankers from Lazard Ltd. to explore options for a full or partial sale, responding to numerous expressions of interest from potential buyers.
DCG had received unsolicited offers of over $200 million for CoinDesk in the preceding months, according to reports from January.
However, as several high-profile banks in the crypto and tech industries collapsed, DCG faced challenges in securing new bankers for its portfolio companies.
Upon the completion of the deal, CoinDesk’s existing management team is expected to continue leading the company.
This development signifies a significant shift in ownership for the media company and underscores the ongoing volatility and consolidation in the cryptocurrency sector.
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