CoinDesk Considering a Potential Sale as DCG's Troubles Deepen

As per recent reports, the crypto media platform CoinDesk

Is exploring a potential sale. The move came after its parent company DCG seeks to strengthen its balance sheet.

The Wall Street Journal recently reported that CoinDesk has hired the services of investment bankers from the financial consultancy firm Lazard. The firm is assisting CoinDesk in evaluating options such as a full or partial sale.

Digital Currency Group reportedly received several offers of over $200 million for the media platform in recent months. This will result in a spectacular return on investment given that DCG acquired the platform for only $500,000 in 2016.

DCG's Barry Silbert has announced to shareholders that he is in significant financial trouble. He earlier announced that dividends will be suspended in order to strengthen its balance sheet and retain liquidity.

On January 18, Bloomberg reported that another DCG unit, cryptocurrency lending firm Genesis Global, was set to file for bankruptcy. The move came as it revealed it owed creditors more than $3 billion, which was most certainly a contributing factor to DCG's financial troubles.

Based on the company's website, CoinDesk and Genesis are among the 200 crypto-related businesses in DCG's venture capital portfolio. DCG also owns asset management firm Grayscale Investments, crypto exchange Luno, and consultancy firm Foundry.

Some feel that CoinDesk's November article uncovering irregularities in Alameda Research's balance sheet was the first domino to fall, leading to the collapse of the crypto exchange FTX. 

Several media outlets contacted CoinDesk to confirm that a possible sale was being discussed. However, at the time of publication, they had yet to receive a response.