Coindesk Up for Sale? Investors Circle Crypto News Publication Amidst Genesis Bankruptcy

January 20, 2023 Bitcoin.com

Bitcoin (BTC) Fights To Regain $21,000 Amid Genesis Rumors and Charges Against Little-Known Crypto Exchange

January 19, 2023 The Daily Hodl

CoinDesk could be up for grabs as parent company DCG scrambles for funds

January 19, 2023 Coin Telegraph

Alameda

DCG has reportedly received offers for CoinDesk exceeding $200 million in recent weeks, which at a purchase price of $500 thousand would be a 39,900% return on its initial investment.

Crypto media outlet CoinDesk is reportedly considering a potential sale as its parent company Digital Currency Group (DCG) looks to strengthen its balance sheet.

According to the Wall Street Journal, CoinDesk has sought the help of investment bankers from financial advisory firm Lazard, who are helping the firm weigh options including a full or partial sale.

You know, I just realized that Coindesk is for sale. pic.twitter.com/QqmBPOClpu
— Charles Hoskinson (@IOHK_Charles) January 19, 2023

DCG has purportedly received multiple offers exceeding $200 million to buy out the media firm over the last few months, which would result in a phenomenal return on their investment given DCG supposedly acquired the company for just $500,000 in 2016.

Barry Silbert’s DCG appears to be in serious financial strife recently, and announced to shareholders on Jan. 17 that it would be halting dividends in an effort to strengthen its balance sheet and “preserve liquidity.”

On Jan. 18, Bloomberg reported that another DCG subsidiary, crypto lending firm Genesis Global, was planning to file for bankruptcy after revealing it owed creditors over $3 billion — likely a leading factor contributing to DCG’s financial woes.

CoinDesk and Genesis are among some 200 crypto-related businesses in DCG’s venture capital portfolio, according to its website. Other companies that DCG owns include asset management firm Grayscale Investments, crypto exchange Luno, and advisory firm Foundry.

Some believe that CoinDesk’s article in November exposing the irregularities in Alameda Research’s balance sheet was the first domino that eventually led to the fall of crypto exchange FTX and the liquidity issues now being faced by Genesis and its parent company DCG and the wider crypto market.

Cointelegraph has reached out to CoinDesk for confirmation that a potential sale was being considered, but was yet to receive an answer at the time of publishing.

Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis

January 18, 2023 Bitcoin.com

Digital Currency Group halts dividends in an effort to preserve liquidity

January 18, 2023 Coin Telegraph

Coin Telegraph

Digital Currency Group, a venture capital firm that owns a stake in more than 200 crypto projects, announced the dividend halt while one of its subsidiaries is in financial strife.

Venture capital firm Digital Currency Group (DCG) has told shareholders it is halting its quarterly dividend payments until further notice as it attempts to preserve liquidity.

According to the letter sent to shareholders on Jan. 17, the firm is focused on “strengthening our balance sheet by reducing operating expenses and preserving liquidity.”

Its financial issues are derived from the woes of its subsidiary, crypto broker Genesis Global Trading, which reportedly owes creditors more than $3 billion and DCG is also considering selling some of the assets within its portfolio.

Customers are currently unable to withdraw funds from Genesis after it halted withdrawals on Nov. 16, which has prompted Cameron Winklevoss — on behalf of his exchange Gemini and its users with funds on Genesis — to call for the board of DCG to remove Barry Silbert as CEO of the firm in a Jan. 10 open letter.

Earn Update: An Open Letter to the Board of @DCGco pic.twitter.com/eakuFjDZR2
— Cameron Winklevoss (@cameron) January 10, 2023

According to Winklevoss, Genesis owes Gemini $900 million for funds that were lent to Genesis as part of Gemini’s Earn program, which offers customers the ability to earn an annual yield of up to 7.4%. He also claimed DCG owed $1.675 billion to Genesis although DCG boss Barry Silbert denied this

Soon after, on Jan. 12, the United States Securities and Exchange Commission (SEC) poured fuel on the fire charging both firms with offering unregistered securities through the Earn program.

Genesis’ problems first became apparent on Nov. 16, when it halted customer withdrawals in the wake of the FTX fallout, citing “unprecedented market turmoil” which resulted in “abnormal” levels of withdrawals.

On Nov. 10, less than a week earlier, Genesis revealed it had around $175 million stuck on FTX, which resulted in DCG sending Genesis an emergency equity infusion of $140 million in an attempt to resolve its liquidity issues.

DCG also owns Grayscale Investments and its series of digital asset trusts and has invested in over 200 companies within the crypto industry including recognizable names such as blockchain analysis firm Chainalysis, stablecoin issuer Circle and digital asset exchange Kraken.

Cointelegraph contacted DCG for comment but did not receive a response.

DCG