Digital Currency Group is nearing a deal to sell its media company CoinDesk to an investor group, according to a person familiar with the situation.
The group is led by longtime crypto investor Matthew Roszak, founder of Tilly Capital and co-founder of Bloq Inc., and Peter Vessenes of venture-capital firm Capital6, according to the person, who wasn’t authorized to speak about the deal publicly. While the price being discussed is unclear, the enterprise value of the transaction is about $125 million, the person said.
The Wall Street Journal reported on the potential sale earlier Thursday. A spokesperson for DCG declined to comment. Neither Roszak nor Vessenes responded to a request for comment.
DCG, the crypto conglomerate helmed by Barry Silbert, bought New York-based Coindesk in 2016. It was founded by entrepreneur Shakil Khan in 2013. Bloomberg News, which is owned by Bloomberg LP, competes with CoinDesk.
DCG is dealing with a number of challenges brought about in part by the sudden collapse of FTX, one of the world’s biggest crypto exchanges, in late 2022. Crypto lender Genesis Global Holdco, one of the group’s firms, froze withdrawals in November and filed for bankruptcy in January. The US Securities and Exchange Commission sued Genesis and Gemini Trust Co. the same month claiming the yield-offering product they offered was an unregistered security.
DCG has been involved in discussions with Genesis’s creditors, including Gemini, over a settlement. This turmoil has led Silbert, a former investment banker, to sell off or shutter assets in his empire and also try to raise new financing. In May, DCG closed down its TradeBlock subsidiary that provided trade execution, pricing and prime brokerage services to institutional investors.
Earlier this month Gemini, founded by the billionaire Winklevoss brothers, filed a lawsuit against DCG alleging fraud and deception.
--With assistance from Olga Kharif and Matthew Monks.
(Adds DCG response in third paragraph.)
