Coindesk may examine sales options and reports

Von Krypto News Österreich

First Genesis, now Coindesk. Barry Silbert's empire seems to be in difficulties because it apparently is considering selling part of its subsidiaries to solve liquidity problems.

On January 18, 2023, Kevin Worth, CEO of Coindesk, reported a news-page subsidiary of the Digital Currency Group, which was aimed at cryptocurrencies, that the company has hired investment bankers from Lazard LTD to check them for a partial or complete sale of the company.

As reported by Wall Street Journal, Worth spoke about how potential investors were interested in owning the digital media company:

"In the past few months we have received numerous incoming information about the interest in Coindesk",

So far, however, everything has been kept privately - if there is intention to sell the company.

liquidity problems of the DCG

According to his own website, Coindesk receives over 5 million visitors per month (Similarweb reports over 10 million visitors), organizes the "Consensus" summit-one of the largest crypto events in the United States-and has expanded to various products, including a newsletter and a YouTube channel.

seems successful, but the reasons for the liquidity problems of the parent company do not come from a poorly functioning media page, but are mainly on the FTX attachment and a fight with the Winklevoss-Zwillingen, founders of the Gemini cryptocurrency exchange according to DCG-owned crypto, led to the lender Genesis, by with Gemini's "Earn" program played around.

The Winklevii publicly called for the resignation of DCG CEO Barry Silbert and accused the company not to have reacted to their attempts to reach an advantageous agreement for both sides. In addition, the US Securities and Exchange Commission (SEC) recently sued both DCG and Genesis because they supposedly did not sell registered securities.

As Cryptopotato recently reported, Genesis may be preparing to register bankruptcy this week after it was failed to apply cash because the crypto fund had a financial gap of more than $ 175 million, which prevented him from resuming customer withdrawals.

what is to be expected

The potential sale of Coindesk or Genesis together with other important DCG-owned crypto companies such as Foundry, Grayscale Investments and Luno could help to solve part-or all-the financial problems of DCG, but could have a significant impact on the cryptocurrency market.

In the worst case, DCG could even consider selling part of its cryptocurrency stocks in order to stay afloat. However, it is worth noting that Grayscale investments alone with 631,460 BTC ($ 13 billion) holds a large amount of Bitcoin. This indicates that the financial problems may not be as bad as they seem and that the company may have a buffer that can fall back on.

Regardless of this, the news about the liquidity problems and the possible sale of subsidiaries from DCG have aroused concerns in the cryptocurrency community and emphasized the continuing challenges that the industry faces.

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