• CoinDesk has begun weighing its options regarding a potential sale as it looks to attract growth capital.
• The firm has recently received offers above $200 million, which would amount to an almost 40,000% return on its initial investment.
• This move comes as a confirmation of DCG’s financial troubles, which it announced to its shareholders on January 17, halting dividends immediately and preserving liquidity.
CoinDesk, the world’s leading source of news, analysis and price data on the digital currency markets, is considering a potential sale as it looks to attract growth capital and bolster its balance sheet. The news comes as Digital Currency Group (DCG), CoinDesk’s parent company, has been facing liquidity issues.
Crypto-focused firm CoinDesk has recently received offers above $200 million, according to the Wall Street Journal, which would amount to an almost 40,000% return on its initial investment. This is a remarkable figure, given that Digital Currency Group acquired CoinDesk for an amount between $500,000 and $600,000 in 2016.
CoinDesk is now seeking advice from Lazard, a specialist firm focused on mergers and restructuring, in order to decide on the best option for the company. The news highlights DCG’s financial troubles, which it announced to its shareholders on January 17. At that time, the group revealed plans to halt dividend payments in order to “preserve liquidity” and improve its balance sheet.
DCG is now exploring a range of options in order to secure the future of the company, including a full or partial sale of CoinDesk. It is not yet clear when the sale may take place, or how much the firm will receive.
Though CoinDesk has become the go-to source for crypto news and data, the firm has also struggled to remain profitable. This is due in part to the fact that the crypto markets have been volatile and unpredictable, making it difficult to generate reliable revenue.
The potential sale could be a major boon for DCG, allowing the firm to reinvest the money generated into other projects. It could also be a major turning point for CoinDesk, enabling it to expand its operations and reach a wider audience.
Ultimately, the future of CoinDesk will depend on the outcome of the negotiations between DCG and its potential buyers. Whatever the outcome, the potential sale could have far-reaching implications for the crypto industry as a whole.