Cryptocurrency-focused media company, CoinDesk, is on the verge of being sold to an investor group for a staggering $125 million, as confirmed by Axios. This acquisition comes as the parent company, Digital Currency Group (DCG), faces challenges due to the recent downturn in the crypto industry. The deal, led by Matthew Roszak’s crypto-focused investment firm Tally Capital and Peter Vessenes of VC firm Capital6, is expected to be finalized in the coming weeks, while CoinDesk’s existing management will remain in place.
Background: Founded in 2013, CoinDesk previously secured approximately $2 million in seed funding from investors such as Digital Currency Group, 500 Startups, and Science Inc. It was later acquired by DCG for $500,000 in 2016. Unfortunately, DCG suffered the impact of the crypto crash, known as “crypto winter,” in the past year and a half, leading to challenges within its subsidiaries, including the bankruptcy of its crypto lending arm, Genesis Global, and the closure of its institutional-trading platform, TradeBlock, and wealth-management unit, HQ.
The Acquisition: CoinDesk’s sale to the investor group is seen as a strategic move to navigate the challenges faced by Digital Currency Group in the crypto market. The deal will allow DCG to retain a stake in CoinDesk’s media, events, data, and indexes business while offloading the company’s operational responsibilities to the investor group.
Investor Group: The investor group responsible for the acquisition is headed by Matthew Roszak’s Tally Capital, a firm focusing on investments in the cryptocurrency space, and Peter Vessenes, representing VC firm Capital6. The group’s expertise and interest in the crypto industry make them a suitable candidate to take over CoinDesk’s operations.
Future Prospects: With the deal nearing its finalization, CoinDesk can look forward to fresh opportunities and potential growth under the leadership of the investor group. Having the support of experienced investors in the crypto space may position CoinDesk to adapt and thrive in the ever-evolving cryptocurrency landscape.
CoinDesk’s upcoming acquisition represents a significant development in the cryptocurrency media sector. The $125 million deal, led by experienced investors in the crypto space, is expected to be finalized soon. Despite the challenges faced by Digital Currency Group due to the crypto industry’s downturn, this acquisition may offer new prospects and stability for CoinDesk, allowing the company to continue serving as a prominent source of information for the crypto community.