bankrupt cryptocurrency It has been reported that Genesis and its sister company CoinDesk, which ignited the collapse by making the news of the collapse of the stock exchange FTX, and also recently declared that it was on the verge of bankruptcy, attracted the attention of potential buyers.
$300M Bid For CoinDesk Found Low
According to the news of Semafor, which is based on people with knowledge on the subject, CoinDesk said that a price of $ 300 million was offered in one of the purchase offers, but this was found to be very low.
The company was generating approximately $50 million in annual revenue from a combination of traditional online advertising and the popular Consensus conference.
Part of Barry Silbert’s private Digital Currency Group (DCG), the company is a holding that includes Grayscale Investments, which manages funds with Bitcoin, Ethereum, and other coins, and Genesis, a lender against clients’ crypto assets.
After the collapse of FTX, it was claimed that DCG was also in financial trouble.
There is no official sale process for CoinDesk, but it has attracted the interest of a large group of potential buyers, including private equity firms, family offices, competing publications like Blockworks, and hedge funds hunting for distressed assets.
The site is from the same family of companies as Genesis on the verge of bankruptcy.
CoinDesk published an article on November 2 detailing the unusually close ties between FTX and its sister hedge fund Alameda Research. Most of Alameda’s money is a digital token issued by FTX. to FTT reported to be connected.
The news shook public confidence in FTX and its tokens, causing billions of dollars in customer withdrawals that FTX could not afford.
The firm declared bankruptcy less than a week later, and Bankman-Fried stepped down as CEO, facing allegations that he was using client funds to cover losses at his Alameda.
The cryptocurrency crisis is still spreading, and CoinDesk is one of many companies that may face an uncertain future. Crypto lender BlockFi declared bankruptcy on Monday, and Bitcoin has lost more than 20% this month.
Troubles at Genesis may force Silbert to choose between his companies, and he may decide to let Genesis go bankrupt so CoinDesk (and Grayscale) can move on.
*Not investment advice.
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