• CoinDesk Inc., a crypto-focused media company, is exploring funding options as its parent company Digital Currency Group (DCG) has run into financial troubles.
• CoinDesk has retained investment bankers from Lazard Ltd. to help it make a decision, including options for a partial or full sale.
• CoinDesk has reportedly received multiple unsolicited offers to sell the media outlet in the past few months, with potential buyers willing to pay up to $200 million.
Crypto-focused media company CoinDesk Inc. is in the process of exploring its funding options as its parent company Digital Currency Group (DCG) has run into financial troubles. The news was first reported by the Wall Street Journal (WSJ). As part of their efforts to make a decision, CoinDesk has retained the services of investment bankers from Lazard Ltd.
CoinDesk’s CEO Kevin Worth revealed that the company is looking at various options, including a partial or full sale. According to Worth, the company has already received indications of interest from interested investors over the last few months. “Over the last few months, we have received numerous inbound indications of interest in CoinDesk,” Worth said.
Citing sources familiar with the matter, the WSJ added that DCG has received multiple unsolicited offers to sell CoinDesk in the past few months. Per the reports, potential buyers are willing to pay up to $200 million for the media outlet. It is worth noting that DCG acquired CoinDesk in 2016 for $500,000.
CoinDesk’s business model revolves around online advertising, index, and events. According to reports, the media outlet generated $50 million in revenue last year. Interestingly, CoinDesk’s Bitcoin Price Index is being tracked by the $13.5 billion Grayscale Bitcoin Trust (GBTC).
Interestingly, DCG’s troubles 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. As a result, the companies have been subject to increased scrutiny by the public, ultimately leading to DCG’s current financial struggles.