Reports Say, CoinDesk May Be Looking At Ways To sell
Due to liquidity problems, Digital Currency Group may have to sell CoinDesk and some of its other crypto subsidiaries. This is causing worry in the industry.
After Genesis came to Coindesk, Barry Silbert’s empire was in trouble since it was rumored to be thinking about selling off some of its subsidiaries to deal with cash flow problems.
On January 18, 2023, Kevin Worth, CEO of Digital Currency Group’s cryptocurrency-focused news site CoinDesk, said that the company had hired investment bankers from Lazard LTD to help them look into options for selling all or part of the company.
According to The Wall Street Journal, Worth talked about how investors might want to buy the digital media outlet:
“Over the last few months, we have received numerous inbound indications of interest in CoinDesk,”
But until now, people have yet to learn whether the company would be sold.
DCG’s Liquidity Issues
Similarweb says that more than 10 million people visit Coindesk every month. Coindesk hosts the “Consensus” summit, one of the most significant crypto events in the United States, and has expanded into other products like a newsletter and a YouTube channel.
It seems to be doing well, but its parent company’s liquidity problems are primarily due to the FTX contagion and a fight with the Winklevoss twins, who started the Gemini cryptocurrency exchange after DCG-owned crypto lender Genesis stopped withdrawals, which messed up Gemini’s “Earn” program.
The Winklevii have publicly asked DCG CEO Barry Silbert to step down and said that the company didn’t respond to their attempts to reach a good deal for both sides. Also, the U.S. Securities and Exchange Commission (SEC) has recently sued both DCG and Genesis for selling securities without being registered.
CryptoPotato recently reported that Genesis might file for bankruptcy this week because it hasn’t been able to raise money. After FTX’s collapse, the crypto fund was left with a financial gap of more than $175 million, which kept it from letting customers withdraw their money.
What Can We Expect?
The sale of CoinDesk or Genesis, along with other essential crypto businesses owned by DCG, like Foundry, Grayscale Investments, and Luno, could help solve some or all of DCG’s financial problems. Still, it could have a significant effect on the cryptocurrency market.
In the worst case, DCG might even consider selling some of its cryptocurrency to stay in business. But it’s important to note that Grayscale Investments has a lot of Bitcoin. It has 631,460 BTC, which is worth about $13 billion. This suggests that the company’s financial problems may be better than they seem and that it may have a safety net.
Even so, the news of DCG’s liquidity problems and the possible sale of its subsidiaries has caused worry in the cryptocurrency community and shows that the industry is still facing problems.
