$125M CoinDesk deal potentially reaching its concluding phase

The cryptocurrency news site, presently owned by Digital Currency Group (DCG), is anticipated to be partially divested to an investor group.

The highly anticipated partial sale of CoinDesk, the renowned crypto news site, is nearing completion with a staggering valuation of $125 million, as reported by The Wall Street Journal on July 20.

The investor group spearheading this significant transaction is led by prominent figures in the crypto industry, namely Peter Vessenes of Capital6 and Matthew Roszak of Tally Capital, a firm dedicated to investments in cryptocurrency and blockchain startups.

As part of the deal, CoinDesk’s parent company, Digital Currency Group (DCG), will retain a substantial stake in the site’s media, events, data, and index business, ensuring continued collaboration and growth in these areas. Moreover, it is expected that CoinDesk’s management structure will remain unchanged, providing stability and continuity to the platform’s operations.

Earlier, in January 2023, The Wall Street Journal had disclosed that CoinDesk had enlisted the services of the esteemed financial services company, Lazard, to explore the possibility of either a partial or total sale. The exploration was initiated in response to unsolicited offers exceeding $200 million received by DCG, although the identities of other interested parties remained undisclosed.

In March, there were reports indicating potential interest from Binance and its subsidiary, CoinMarketCap, to acquire CoinDesk. However, it appears that these discussions were temporarily placed on hold. Binance CEO Changpeng Zhao subsequently clarified that his company would not be pursuing the acquisition, ultimately leading the way for other investors.

It’s worth noting that DCG originally acquired CoinDesk back in 2016 for a modest sum of around $500,000. The extraordinary growth in valuation since then showcases the immense potential and value of the crypto news site in the fast-evolving digital currency landscape.

Deal is pending amidst DCG crisis

CoinDesk has demonstrated remarkable financial strength throughout negotiations, boasting a robust revenue of $50 million in 2022, generated from its highly successful online advertising, index services, and events business.

Although the negotiations are ongoing, it is essential to note that the broader struggles faced by DCG have not impacted CoinDesk’s exceptional performance. Despite the challenges, CoinDesk has maintained its position as a thriving entity in the digital currency space.

While DCG’s subsidiary, Genesis Global Capital, faced a setback with its lending arm filing for bankruptcy in January, it is crucial to emphasize that CoinDesk’s operations remain unaffected and continue to excel.

Furthermore, CoinDesk’s commitment to its customers is unwavering, even amidst disputes with other companies like Gemini and Genesis. Although there have been disagreements, CoinDesk remains dedicated to resolving these matters to ensure its customers have access to their funds as soon as possible.

In response to market conditions and strategic decisions, DCG has made the prudent choice to close its institutional-trading platform, TradeBlock, and its wealth management unit, HQ Digital. These actions demonstrate DCG’s proactive approach to optimizing its operations and focusing on areas of growth and profitability.

Overall, CoinDesk’s financial performance remains strong and resilient, standing as a testament to the company’s ability to thrive in the face of challenges, positioning itself as a dominant force in the digital currency industry.


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