Bullish Acquires CoinDesk
CoinDesk, the well-known crypto news site, has been acquired by Bullish, a digital asset exchange headed by the former New York Stock Exchange president, Tom Farley. The site was purchased from Barry Silbert’s Digital Currency Group, marking a significant change in the crypto world. Although the terms of the purchase have not been disclosed, it’s been reported to be an all-cash deal.
DCG, which originally acquired CoinDesk for $500,000 in 2016, had reportedly received unsolicited offers for more than $200 million earlier in the year. The acquisition process was challenging, with a $125 million purchase agreement in July falling through, resulting in layoffs of around 16% of CoinDesk’s staff.
Editorial Independence and History
The existing management team will remain in place at CoinDesk, with a new editorial committee headed by Matt Murray, formerly the editor-in-chief of The Wall Street Journal, put in place to ensure journalistic independence. CoinDesk, launched in 2013, is known for breaking stories in the crypto universe and has faced challenges related to its reporting.
Legal Troubles and Financial Struggles
In addition to the acquisition of CoinDesk, DCG, and its subsidiary Genesis, have faced legal and financial struggles. Genesis has filed for bankruptcy protection after suffering crippling losses from FTX and Three Arrows Capital, and is currently the subject of a Securities and Exchange Commission charge alongside crypto exchange Gemini.
Hot Take
The acquisition of CoinDesk by Bullish represents a pivotal moment for the crypto news industry. As CoinDesk continues to navigate through this transition period, the new ownership and management structure may open up new opportunities and challenges for the media company in the ever-evolving world of cryptocurrency.
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