DCG Considers Selling CoinDesk Edition


Digital Currency Group (DCG) is considering selling a portion or 100% of crypto-specialist publication CoinDesk to “raise capital to drive its future growth.” About it The Wall Street Journal said CEO Kevin Worth.

The DCG subsidiary has received “numerous signals of interest” from potential buyers over the past few months, the executive said.

The upper bar for proposals was $200 million. In 2022, the media received an income of $50 million.

In 2016, the Digital Currency Group (DCG) purchased the publication for $500,000–600,000.

CoinDesk turned to investment bank Lazard for help structuring the deal.

On the eve of the holding, which also includes the management company Grayscale Investments, the Genesis Global Capital landing platform, the Foundry mining company and the Luno cryptocurrency exchange, suspended the payment of dividends.

DCG needs liquidity as Genesis Global Capital struggles. The latter owed $3 billion, according to media reports. This amount includes claims from Gemini exchange clients for $900 million.

The holding is considering the sale of assets for $500 million from the portfolio of venture investments. The latter includes 200 positions in projects like Coinbase, Kraken, FTX and Blockchain.com.

Early 2023 Digital Currency Group announced the closure of a subsidiary of HQ Digital, specializing in asset management. Genesis Trading has laid off 30% of its employees.

Recall that Gemini co-founder Cameron Winklevoss in another open letter called on the head of DCG Barry Silbert to resign. The conflict, which went public, increased fears that Genesis would file for bankruptcy.

In November, the platform did not rule out this scenario in an attempt to raise funding. The move raised concerns about the sustainability of parent DCG and the future GBTC.

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