Crypto news site CoinDesk has reportedly sparked buyout interest following the platform’s report on FTX and Alameda ties.
According to Semafor, crypto news site CoinDesk is drawing buyout interest from potential new owners. Semafor further reported that CoinDesk, owned by Digital Currency Group (DCG), has notably received a $300 million purchase price offer from one of its potential buyers. However, the digital currencies news site considered the offer to be too low. CoinDesk is already making around $50 million yearly from a combination of its popular Consensus conference and traditional online advertising.
Reports suggest that CoinDesk’s suitors constitute a disparate group of companies. These include private equity firms, family offices, rival publications such as Blockworks, and hedge funds that specialize in acquiring distressed assets. These potential acquisitors began to consider a buyout of CoinDesk following the platform’s coverage of FTX and Alameda Research. However, despite the swelling attention, there is no formal sales process yet, unnamed sources state.
CoinDesk FTX, Alameda Article that May Have Allegedly Induced Buyout Interest
The CoinDesk article on FTX and Alameda comprehensively explained the operational symbiosis between both Sam Bankman-Fried-owned companies. This report included their balance sheet structure, assets under management, and net equity. For instance, the article stated the interdependence of both crypto-focused entities and suggested that Alameda’s net equity hinges on FTX’s FTT token. Or as Cory Klippsten, CEO of investment platform Swan Bitcoin, explained in the CoinDesk report:
“It’s fascinating to see that the majority of the net equity in the Alameda business is actually FTX’s own centrally controlled and printed-out-of-thin-air token.”
Digital Currency Group
DCG remains mum about the details of the CoinDesk development. However, last week, CEO Barry Silbert touched on another internal issue. In a letter to shareholders, Silbert addressed problems with one of DDG’s other companies, Genesis. Debunking “noise” surrounding a possible bankruptcy of DCG and Genesis, he said that “DCG will continue to be a leading builder of the industry and we are committed to our long-term mission of accelerating the development of a better financial system.”
In addition, the DCG CEO also moved to remind everyone of his company’s ability to withstand insolvency pressures.
“We have weathered previous crypto winters and while this one may feel more severe, collectively we will come out of it stronger,” said Silbert.
There are currently discussions about the health of Genesis and DCG since Genesis Trading’s lending business Genesis Global Capital temporarily suspended redemptions. The company also stopped new loan originations around the same time last week following FTX’s collapse earlier this month.
Founded by Silbert in 2015 and headquartered in Stamford, Connecticut, DCG is a venture capital company that focuses on the digital currency market. Before launching DCG, Silbert served as chief executive of Nasdaq Private Market – then known as SecondMarket, Inc. He also began investing in blockchain technology companies in 2013.
In addition to CoinDesk and Genesis, the DCG conglomerate also sports Foundry, Luno, and Grayscale Investments – a fund manager of various crypto. Grayscale has more than $13 billion in assets across its different investment products and is, so far, weathering the tumultuous crypto space.