The cryptocurrency news site CoinDesk may be in the final stages of being partially acquired by an investor group for around $125 million, according to sources familiar with the matter speaking to The Wall Street Journal.
CoinDesk’s current owner, Digital Currency Group (DCG), would reportedly keep a stake in the site’s media, events, data and index business under the deal. However, CoinDesk’s management structure would likely remain unchanged.
The investor group involved in the sale is reportedly headed by Peter Vessenes of Capital6 and Matthew Roszak of Tally Capital.
Back in January 2023, The Wall Street Journal reported that CoinDesk had hired financial services firm Lazard to explore the possibility of a partial or total sale after DCG received offers over $200 million. Binance and its subsidiary CoinMarketCap were also said to be interested in acquiring CoinDesk in March, though that deal never materialized.
DCG itself originally acquired CoinDesk in 2016 for around $500,000.
CoinDesk has reportedly generated around $50 million in revenue for 2022 from its online advertising, index services and events business. However, DCG has been struggling recently, with its Genesis Global Capital lending arm filing for bankruptcy in January and Gemini suing Genesis over alleged insolvency issues.
If completed, the deal would likely value CoinDesk at around $125 million and infuse the cryptocurrency news site with new capital while allowing DCG to retain a stake in the business. The acquisition could also help position CoinDesk for further growth. But for now, the deal remains in the final stages according to sources familiar with the matter. (Source: CryptoSlate)