Popular Crypto media site, CoinDesk, might be up for sale following the financial crisis of DCG, its parent firm. According to reports, DCG has received bids to sell CoinDesk for over $200 million.
The sale would represent a 39,900% yield on the firm’s initial investment, as the media outlet was previously worth $500,000. DCG has enrolled the help of investment experts from Lazard — a financial advisory company, on whether it should sell CoinDesk in full or partially, the Wall Street Journal reports.
An Impressive ROI
The DCG reportedly purchased the news firm seven years ago for $500,000, and in the last few months, DCG has received bids of over $200 million to sell Coindesk, according to multiple reports. This would represent an impressive ROI for the capital market firm.
The Barry Silbert-founded DCG has been undergoing major financial challenges recently. The company told its shareholders two days ago that it would stop dividend payments as one of the solutions to its liquidity problems.
On Friday, multiple reports confirm that DCG subsidiary—-Genesis Global, a cryptocurrency lending firm, has filed for bankruptcy after disclosing it is in creditors’ debt with at least $3.5 billion. That explains why DCG has liquidity problems.
According to DCG’s website, its VC portfolio includes two hundred cryptocurrency-related companies, like Genesis and CoinDesk. Additionally, DCG owns Grayscale Investments—- an asset manager, Foundry—- the advisory business and Luno— a crypto trading platform.
Genesis Bankruptcy Filing And The Crypto Market
After being on a downtrend for several months, the leading digital asset, BTC, has been on an uptrend in the last few days. Current on-chain data shows that BTC currently trades at $21,058.
Although this may seem like excellent news, the bankruptcy filing of the DCG subsidiary would negatively impact BTC’s price action and the broader crypto market, similar to the effect of the FTX collapse. The two businesses, DCG and Gemini, started by original bitcoin experts, have been involved in a legal battle over borrowed funds Gemini gave to Genesis for months.
Since then, Cameron Winklevoss—co-founder at Gemini- has made several increasingly inciteful statements towards Silbert. Initially, he accused Silbert of adopting “stall tactics” and demanded that Silbert resigns as DCG CEO.