A new chapter for CoinDesk under bullish ownership.
·Cryptocurrency exchange Bullish acquires CoinDesk in a confidential all-cash deal.
· Despite the acquisition, CoinDesk will retain its current management and operate as an independent entity within Bullish.
CoinDesk’s parent company, Digital Money Group, faced financial difficulties following the collapse of FTX, impacting its subsidiary Genesis.
The cryptocurrency news industry is undergoing significant changes as Bullish acquires CoinDesk, one of the largest news outlets in the cryptocurrency market. The move comes on the heels of FTX’s tumultuous downfall, which had far-reaching consequences for CoinDesk’s parent company.
Bullish, the cryptocurrency exchange led by former New York Stock Exchange president Tom Farley, has completed its acquisition of CoinDesk. Financial details of the deal, which was first reported by The Wall Street Journal, were not disclosed.
CoinDesk announces commitment to independence
Following the acquisition, CoinDesk announced that it will maintain operational autonomy. It will continue to operate as an independent subsidiary within the Bullish framework. According to CoinDesk, the news outlet’s existing management team remains at the helm.
CoinDesk also announced that they are preparing to form an editorial board. The board will be led by Matt Murray, the former editor-in-chief of The Wall Street Journal.
The roots of the acquisition can be traced back to the collapse of FTX’s financials, a story CoinDesk broke in November of last year. However, the revelation had an adverse effect on CoinDesk’s parent company, Digital Currency Group (DCG).
DCG, a venture capital firm focused on cryptocurrencies and blockchain projects, acquired CoinDesk for $500,000 in 2016. The impact of FTX’s collapse spread to Genesis, a subsidiary of DCG that had significant financial exposure to FTX. This led Genesis to file a lawsuit against DCG to recover $620 million in outstanding loans.
No specific details about the acquisition are available yet
DCG and Genesis’ legal troubles expanded further when New York Attorney General Letitia James filed a lawsuit alleging investor deception and financial losses exceeding $1 billion.
While CoinDesk has reported the acquisition, it has not confirmed specific details. Prior to this, CoinDesk had been exploring the possibility of a sale since January and had to lay off about 16% of its staff in August.
Bullish representative Tom Farley highlighted CoinDesk’s contribution to the cryptocurrency and blockchain ecosystem through its editorial content, market-leading data and major events. He said Bullish intends to inject capital into CoinDesk’s growth plans, potentially leading to new services, events and products.
Additionally, according to The Wall Street Journal, Bullish is considering acquiring the remaining assets of FTX. This move could mark a strategic expansion for Bullish, potentially giving the troubled FTX exchange a second life.
Bullish's acquisition of CoinDesk marks a major change in the cryptocurrency industry. Not only is this a strategic move for Bullish, but it is also a lifeline for CoinDesk as its parent company runs into financial trouble. As CoinDesk continues to work in the broader cryptocurrency and blockchain space, the acquisition could open up new growth opportunities for CoinDesk. #Bullish #CoinDesk
