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CoinDesk Considers Putting Itself Up For Sale

 |  January 19, 2023

Cryptocurrency-centric news outlet CoinDesk is reportedly seeking a buyer.

CEO Kevin Worth told the Wall Street Journal (WSJ) the company had hired investment bankers at Lazard Ltd. to examine options that include a full or a partial sale.

“Over the last few months, we have received numerous inbound indications of interest in CoinDesk,” Worth said in a report published Wednesday (Jan. 18).

The move comes in the middle of an ongoing crisis within the crypto industry, including the apparent bankruptcy of a company owned by CoinDesk’s parent.

That company, Digital Currency Group (DCG), has received several unsolicited offers of more than $200 million in the past few months, sources told the WSJ.

It’s a figure that dwarfs the $500,000 DCG reportedly paid for CoinDesk in 2016. The sources told the Journal CoinDesk generated $50 million in revenue last year.

Related: ‘Translating Issues’ Delay Vote On EU Crypto Law

PYMNTS has contacted DCG for comment but has yet to get a response.

Within hours of the WSJ story, reports emerged that another DCG company, the crypto lender Genesis Global Capital was on the verge of filing for bankruptcy.

That news followed reports from earlier in the month that the company was considering bankruptcy and had slashed 30% of its workforce.

“As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally,” a Genesis spokesperson told PYMNTS at the time. “These measures are part of our ongoing efforts to move our business forward.”

Genesis is facing other troubles. Last week, the Securities and Exchange Commission (SEC) charged it and Gemini Trust Company with allegedly offering unregistered securities.

The complaint centered on the Gemini Earn program, through which the two companies raised billions in crypto assets while allegedly failing to give investors the necessary information.

Genesis also owes Gemini $900 million. It was the main partner in the Earn program, in which retailer investors were to lend out cryptocurrency and get a fixed stream of returns.

The company’s troubles – and indeed a lot of crypto firms’ troubles – stem from the avalanche of crypto-universe problems that began with the collapse of crypto exchange FTX.