CoinDesk, the prominent New York-based crypto news platform, has been acquired by Bullish, a crypto exchange led by former New York Stock Exchange president Tom Farley. This acquisition comes as CoinDesk‘s parent company, Digital Currency Group (DCG), grapples with financial challenges arising from the collapse of FTX. CoinDesk carried out a mass termination in the summer and sought new owners willing to inject fresh funds.
The acquisition, conducted in an undisclosed all-cash deal, will see CoinDesk continue to operate independently as an “independent subsidiary within Bullish.” CoinDesk also plans to establish an editorial committee headed by former Wall Street Journal editor-in-chief Matt Murray. Bullish CEO Tom Farley said that they “immediately inject capital” into CoinDesk‘s growth initiatives to facilitate the launch of new services, events, and products.
CoinDesk played a pivotal role in exposing the financial troubles at FTX in November, leading to a series of consequences for DCG, a crypto-focused venture capital company. DCG had acquired CoinDesk in 2016 for $500,000. However, the fallout from FTX‘s collapse affected DCG‘s crypto lender subsidiary, Genesis, which found itself entangled in the turmoil. Genesis took legal action against DCG in September, seeking to recover $620 million in unpaid loans. Additionally, both DCG and Genesis are facing a lawsuit from New York Attorney General Letitia James, who alleges that the companies misled investors and resulted in losses exceeding $1 billion.
Barry Silbert, the founder of DCG, shared his pride in CoinDesk’s journey, describing it as one of the company’s “best investments of all time.” CoinDesk has grown into a media and events company over the past seven years.
While CoinDesk reported on the acquisition news, it has not officially confirmed the deal. It’s worth noting that the crypto media outlet had initiated discussions about a potential sale in January and carried out layoffs affecting approximately 16% of its workforce in August.
Moreover, Bullish is reportedly considering the acquisition of remaining assets from FTX, which could potentially provide an opportunity to revive the fallen exchange. This move signifies Bullish’s strategic ambitions in the crypto industry and its intention to play a significant role in the evolving landscape.
