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Coindesk Up for Sale? Investors Circle Crypto News Publication Amidst Genesis Bankruptcy

Validated Individual Expert

According to various reports, investors are reportedly interested in purchasing Coindesk, a cryptocurrency news publication. On Jan. 18, Wang Feng, founder of China-based news publication Marsbit, announced his intentions to purchase Coindesk along with other members of the crypto industry. This news follows a report from Semafor at the end of November 2022 stating that Coindesk had received takeover solicitations from several investors.

Coindesk’s Alleged Asking Price: $200 Million or More as Charles Hoskinson and Marsbit Express Interest in Purchase

Investors are reportedly considering purchasing the cryptocurrency news publication Coindesk after a subsidiary of Digital Currency Group (DCG), Genesis Global Capital, filed for bankruptcy protection. Coindesk is an independently operated news and conference business that is wholly owned by DCG.

According to Charles Hoskinson, co-founder of Ethereum and founder of Cardano, sources familiar with the matter have indicated that the asking price for the news outlet Coindesk is around $200 million. Hoskinson has expressed interest in purchasing Coindesk, as stated in a Youtube video titled “Buying Coindesk.”

Hoskinson’s $200 million quote is less than the estimate given to Semafor at the end of Nov. 2022 when sources informed the news publication that investors were interested in buying Coindesk. At that time, Semafor’s Bradley Saacks and Liz Hoffman reported that there was a “suggested $300 million purchase price.” The report added that people familiar with the matter stated that the $300 million estimate was “considered too low.”

Semafor’s Bradley Saacks said Coindesk generates most of its revenue from events such as the Consensus conferences and advertising. Saacks notes that the revenue “pool of both is shrinking fast.” In addition to Charles Hoskinson, Wang Feng, the founder of China-based news publication Marsbit, has also announced intentions to purchase the publication. Marsbit is a news publication backed by Binance, the largest cryptocurrency exchange by trade volume.

Wang announced on Jan. 18, 2023, that Marsbit is willing to “organize a number of well-known funds to jointly acquire and integrate Coindesk,” according to the founder’s tweet. He also stated that the Consensus conference business would be included in the acquisition. Coindesk was originally founded in 2013 by entrepreneur Shakil Khan, who is also the co-founder of Prima Materia and an early investor in Bitpay.

Coindesk was acquired by DCG in Jan. 2016, for an estimated amount of $500,000 to $600,000, according to a report by Techcrunch reporter Lucas Matney. Coindesk published an article about the acquisition, noting that they were “excited” to join DCG and mentioning that DCG had been one of Coindesk’s “earliest investors and supporters.”

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