- CoinDesk’s CEO to explore ways to attract growth capital for the company.
- CoinDesk has received several inbound indications of interest in the firm.
- Last year, CoinDesk had revenue of $50 million.
According to the latest reports, Crypto Media House, CoinDesk have hired investment bank Lazard as it explores the potential sale of its business. The decision comes in light of the recent crypto market slump and huge firms in the industry declaring bankruptcy.
CoinDesk’s CEO, Kevin Worth, has stated:
My goal in hiring Lazard is to explore various options to attract growth capital to the CoinDesk business, which may include a partial or full sale.
The CEO further revealed that over the last few months, the firm has received several inbound indications of interest in CoinDesk.
As per reports, CoinDesk had a revenue of $50 million last year. The revenue sum was generated from sources including online advertising, indexing, and event business.
CoinDesk’s parent company, Digital Currency Group (DCG), has received offers worth $200 million in the past few months. DCG initially acquired CoinDesk back in 2016 for $500,000.
Not just the media portal, but DCG’s other businesses, including Grayscale Investments and bitcoin mining firm, Foundry, are also facing serious problems due to the industry slump. Also, DCG’s crypto lending firm, Genesis Global Trading Inc., recently fired 30% of its employees.
Genesis also onboarded legal advisors for a potential bankruptcy filing after it stopped withdrawals and loan origination. Note that Genesis is already in hot water after the SEC charged it alongside crypto exchange Gemini for allegedly selling unregistered securities. In its defense, Genesis justified the fact that it did not have enough liquid assets to allow the withdrawal demands.
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Source: https://coinedition.com/crypto-media-house-coindesk-taps-bankers-to-explore-potential-sale/