DCG has reportedly received offers for CoinDesk exceeding $200 million in recent weeks, which at a purchase price of $500,000 would be a 39,900% return on its initial investment.
Crypto outlet CoinDesk is reportedly eyeing a sale as its parent company Digital Currency Group (DCG) looks to shore up its balance sheet.
According to the Wall Street Journal, CoinDesk has enlisted the help of financial advisors from the financial consulting firm Lazard, who are helping the company evaluate options, including a full or partial sale that does not exist. It was reported that DCG received several offers of more than $200 million for the media company in recent months, which will translate into an impressive return on investment considering that DCG acquired the company for only $500,000 in 2016.
Barry Silbert’s DCG seems to be in serious financial trouble lately and announced to shareholders on January 17 that it will stop dividends in its efforts to balance the books and “preserve liquidity”.
On January 18, Bloomberg reported that another DCG subsidiary, the crypto-lending company Genesis Global, plans to file for bankruptcy after it revealed that it owes more than $3 billion to creditors – perhaps the main factor -contributing to DCG’s financial crisis.
CoinDesk and Genesis are among about 200 crypto-related companies in DCG’s capital portfolio, according to its website. Other companies owned by DCG include asset management firm Grayscale Investments, crypto exchange Luno, and consulting firm Foundry. Some believe that CoinDesk’s November article revealing Alameda Research’s balance sheet is the first Domino’s that ultimately led to the collapse of crypto exchange FTX and the current financial crisis facing Genesis and its parent company DCG and the broader crypto market.
Cointelegraph has contacted CoinDesk to confirm that a sale is being considered, but has not received a response as of press time.
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