Crypto media outlet CoinDesk is reportedly considering a possible sale as its parent company Digital Currency Group (DCG) looks to strengthen its balance sheet.
According to the Wall Street Journal, CoinDesk has sought the help of investment bankers from financial advisory firm Lazard, who are helping the firm weigh options, including a full or partial sale.
You know, I just found out that Coindesk is for sale. pic.twitter.com/QqmBPOClpu
—Charles Hoskinson (@IOHK_Charles) January 19, 2023
DCG has reportedly received multiple offers in excess of $200 million to buy the media company in recent months, which would result in a phenomenal return on their investment given that DCG reportedly acquired the company for just $500,000 in 2016.
Barry Silbert’s DCG appears to be in serious financial trouble recently and announced to shareholders on January 17 that it would suspend dividends in an effort to strengthen its balance sheet and “preserve liquidity.”
On Jan. 18, Bloomberg reported that another DCG subsidiary, crypto lending firm Genesis Global, was planning to file for bankruptcy after revealing that it owed creditors more than $3 billion, likely a major contributing factor to the problems. DCG financiers.
CoinDesk and Genesis are among some 200 cryptocurrency-related companies in DCG’s venture capital portfolio, according to its website. Other companies DCG owns include asset management firm Grayscale Investments, cryptocurrency exchange Luno, and advisory firm Foundry.
Related: Gemini and Genesis legal troubles could further shake up the industry
Some believe that the November CoinDesk article exposing Alameda Research’s balance sheet irregularities was the first domino that ultimately led to the crash of crypto exchange FTX and the liquidity problems now facing Genesis and its parent company DCG and the crypto market in general.
Cointelegraph reached out to CoinDesk to confirm that a possible sale was being considered, but had not yet received a response at press time.
