CoinDesk, a crypto news publication, is exploring its company’s full or partial sale. The publication has also hired Lazard as the investment bank overseeing the deal. Coindesk is a subsidiary of Digital Currency Group, a crypto conglomerate in the spotlight amid the financial woes facing its other subsidiary, Genesis.
CoinDesk hires Lazard to find a buyer
The cryptocurrency industry has been battered by one of the worst bear markets in history. The plunging crypto prices in 2022 and the collapse of Terra triggered a chain of events that resulted in the bankruptcies of top crypto firms such as Celsius, BlockFi, Voyager, Three Arrows Capital, and FTX.
The CEO of CoinDesk, Kevin Worth, spoke to Reuters on the development, acknowledging that the company was considering the sale. “My goal is hiring Lazard is to explore various options to attract growth capital to the CoinDesk business, which may include a partial or full sale,” Worth said.
CoinDesk is a New York-based crypto publication company that launched in 2013. The company was launched to track the price of Bitcoin, but it later evolved into a platform providing news about the crypto market alongside pricing benchmarks for a wide range of crypto assets.
The possible sale of CoinDesk comes after the bankruptcy of FTX, which ranked as one of the largest cryptocurrency exchanges by trading volumes. Despite the recent recovery in crypto prices, the effects of the crypto winter are still being felt, with exchanges like Coinbase and Crypto.com announcing more layoffs.
CoinDesk sale comes amid DCG crisis
The sale of CoinDesk comes amid the financial crisis currently facing Digital Currency Group. CoinDesk is wholly owned by DCG, the parent company of Genesis Global Capital.
Genesis halted withdrawals on its lending unit on November 16 because of exposure to FTX. The company held funds at FTX, which were no longer accessible after FTX filed for Chapter 11 bankruptcy.
Recent reports have said that Genesis is planning to file for bankruptcy as soon as this week because of the financial situation at the firm. Additionally, the company is considering a deal with creditors that includes cash and shares at DCG. Genesis owes over $3 billion to creditors, and $900 million of the amount belongs to users of Gemini Earn.
DCG recently said that it was suspending dividends until further notice to save cash. The announcement triggered concerns about the plans of one of the largest cryptocurrency companies. DCG is also the parent company of Grayscale, the largest digital asset manager.
The co-founder of Gemini, Cameron Winklevoss, recently urged the company board to remove Barry Silbert as the CEO. Winklevoss noted that Silbert’s actions resulted in the situation at Genesis. Genesis and Gemini are currently facing a lawsuit filed against the two companies by the US Securities and Exchange Commission (SEC).
>>> 🌎《#TNNS is now live for trading on APE SWAP Exchange! BUY NOW!》📈<<<
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.