New chapter for CoinDesk under Bullish ownership.
- Bullish, a cryptocurrency exchange, has acquired CoinDesk in a confidential all-cash transaction.
- Despite the acquisition, CoinDesk will retain its current management and function as an independent entity within Bullish.
- CoinDesk’s parent company, Digital Currency Group, faced financial difficulties following the FTX collapse, impacting its subsidiary Genesis.
The cryptocurrency news industry witnessed a significant change with the acquisition of CoinDesk, one of the biggest news outlets in the crypto market, by Bullish. This move came after the tumultuous downfall of FTX, which had far-reaching effects on CoinDesk’s parent company.
Bullish, a cryptocurrency exchange led by former New York Stock Exchange president Tom Farley, has finalized the purchase of CoinDesk. This deal, whose financial details remain undisclosed, was initially reported by The Wall Street Journal.
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CoinDesk Announces Commitment to Independence
In the wake of this acquisition, CoinDesk announced that it will maintain its operational autonomy. It will continue functioning 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 gearing up to establish an editorial committee. The committee will be led by Matt Murray, the former editor-in-chief of The Wall Street Journal.
The roots of this acquisition trace back to the unraveling of FTX’s financials, a story that CoinDesk brought to light last November. However, the fallout from this revelation adversely affected Digital Currency Group (DCG), CoinDesk’s parent company.
DCG, a venture capital firm with a focus on crypto and blockchain initiatives, acquired CoinDesk in 2016 for $500,000. The effects of the FTX collapse spilled over to DCG’s subsidiary, Genesis, which had significant financial exposure to FTX. This led to Genesis filing a lawsuit against DCG in an effort to recuperate $620 million in outstanding loans.
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No Specific Details Yet on the Acquisition
The legal troubles for DCG and Genesis extended further, with a lawsuit filed by New York Attorney General Letitia James, alleging investor deception and financial losses exceeding $1 billion.
While CoinDesk has reported on its acquisition, it stopped short of confirming the specific details. Prior to this development, CoinDesk had been exploring the possibility of a sale since January and had to reduce its workforce by approximately 16 percent in August.
Tom Farley, representing Bullish, highlighted CoinDesk’s contributions to the crypto and blockchain ecosystem through its editorial content, market-leading data, and prominent events. He indicated that Bullish intends to infuse capital into CoinDesk’s growth initiatives, potentially bringing new services, events, and products.
Moreover, Bullish is reportedly considering the acquisition of FTX’s remaining assets, as per The Wall Street Journal. This move could signal a strategic expansion for Bullish, potentially allowing the revival of the beleaguered FTX exchange.
The acquisition of CoinDesk by Bullish marks a significant change in the cryptocurrency industry. It shows not only a strategic move by Bullish but also a lifeline for CoinDesk amidst the financial troubles of its parent company. This acquisition could bring about new growth opportunities for CoinDesk as it continues its work on the broader crypto and blockchain landscape.
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