Journalists learned about the upcoming sale of CoinDesk


A group of investors is in the final stages of negotiations to buy crypto-focused publication CoinDesk, with a $125 million valuation, The Wall Street Journal writes, citing informed sources.

The amount of investment is not disclosed.

The syndicate is led by Matthew Rojak of Tally Capital and Peter Vessenes of Capital 6.

In January, the WSJ reported that parent Digital Currency Group (DCG) was considering selling part or 100% of CoinDesk, which became part of the holding in 2016 after being bought for $500,000-600,000.

It was reported that the upper limit of proposals was $200 million. In 2022, the media received $50 million in revenue.

The potential deal could ease DCG’s tough spot. On May 22, the holding delayed a payment of $630 million as part of compensation to users of Gemini Earn.

Earlier, Digital Currency Group, its “daughter” Genesis, the committee of creditors of the crypto-lending platform and Gemini agreed to launch a 30-day pre-trial reconciliation process.

The parties are striving to find an acceptable solution to the Genesis agreement proposed in February 2023 with creditors, under which the latter will be able to return 80% of the lost funds. The agreements provided for the gradual zeroing of the Genesis loan portfolio and the sale of insolvent structures.

The group’s lending business needed financial support after the June 2022 bankruptcy of cryptocurrency hedge fund Three Arrows Capital.

On November 6, 2022, Genesis Global Capital froze the withdrawal of funds and the issuance of new loans. The firm cited “increased demand” from customers following the collapse of FTX.

In January 2023, Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy. According to media reports, their liabilities exceed $3 billion.

Recall, on May 31, it became known about the curtailment of the activities of the trading platform included in the DCG with a focus on institutional investors TradeBlock.

The decision was made four months after the closure of a subsidiary of the HQ Digital holding, which specializes in asset management.

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