• CoinDesk, a crypto media site, has tapped advisors at Lazard to explore a potential sale of its business.
• The move comes as CoinDesk’s sister company Genesis has been hit with a liquidity crunch following the collapse of FTX.
• CoinDesk, which is wholly owned by Digital Currency Group, seeks to attract growth capital by selling a portion or all of its business.
The crypto news website CoinDesk has announced that it has hired advisors at Lazard, a leading financial advisory and asset management firm, to explore a potential sale of its business. The move comes as CoinDesk’s sister company, Genesis, has been grappling with a liquidity crunch following the collapse of FTX.
CoinDesk, which is wholly owned by crypto-focused venture capital firm Digital Currency Group, is looking to attract growth capital by selling a portion or all of its business. This suggests that Barry Silbert’s crypto empire might be in trouble. In an interview with Reuters, CoinDesk CEO Kevin Worth confirmed the news, saying that there has been some interest in the crypto outlet. He further stated that his goal in hiring Lazard is to explore various options to bring in growth capital.
Launched in 2013, CoinDesk has grown to be a prominent source of news within the crypto industry. The publication was the first to break the story about potential balance sheet improprieties at Sam Bankman-Fried’s Alameda Research. Binance CEO Changpeng Zhao, who is still blamed by SBF for his role in the FTX collapse, announced his decision to sell all his FTT holdings citing the CoinDesk report. The move then sparked a downward spiral at crypto exchange FTX, which subsequently filed for bankruptcy in November. After US prosecutors formally filed criminal charges against Bankman-Fried, he was arrested in The Bahamas in December last year and eventually extradited to the US. He was later released from jail after posting a $250m bond in a New York court.
CoinDesk’s move to explore a sale of its business comes at a time when the crypto industry is seeing a surge in investments, mergers and acquisitions. With the right capital, CoinDesk could become even more prominent in the crypto media space. It remains to be seen if the venture will be successful in its quest to attract growth capital and if it will ultimately be sold.