The cryptocurrency exchange Bullish, affiliated with the EOS project and Block.one, has completed the acquisition of CoinDesk, a media outlet focused on the crypto industry.
Bullish has acquired @CoinDesk, which will operate as an independent subsidiary and retain editorial independence. Bullish will immediately inject capital into several of CoinDesk’s most exciting growth initiatives which will power the launch of new services, events and products.… pic.twitter.com/vGIUXI9Jy3
— Bullish (@Bullish) November 20, 2023
“Bullish will immediately inject capital into several of CoinDesk’s most exciting growth initiatives, which will power the launch of new services, events and products. We also want to express our unwavering support for CoinDesk’s journalistic independence,” the statement said.
Led by former president of the NYSE, Tom Farley, Bullish acquired 100% of CoinDesk from the Digital Currency Group (DCG). Financial terms were not disclosed.
According to the press release, CoinDesk will operate as an independent subsidiary of the exchange. The plan also calls for the formation of an editorial committee chaired by former The Wall Street Journal editor-in-chief Matt Murray. The current CoinDesk management team will remain unchanged.
Barry Silbert, founder of DCG, said that he looked forward to seeing how Bullish would take CoinDesk to the next level.
2/ I’m incredibly proud of CoinDesk’s growth & development over the last seven years and its transformation into an award-winning media & events company and the most trusted information platform for digital assets
We look forward to seeing Bullish take CoinDesk to the next level
— Barry Silbert (@BarrySilbert) November 20, 2023
In January 2016, DCG announced the acquisition of CoinDesk. However, in the summer of 2022 it became known about financial problems at another subsidiary of the group — Genesis Global Capital. Support for the lending business of the group was needed after the collapse of the cryptocurrency hedge fund Three Arrows Capital.
In November, the OTC platform froze withdrawals and the issuance of new loans. The firm cited “heightened client demand” following the collapse of FTX.
In January 2023, Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy. According to media reports, their liabilities exceeded $3 billion.
Against this backdrop, sources cited by WSJ reported that DCG planned to sell CoinDesk with a valuation of about $125 million, partially or fully. Then DCG CEO Kevin Worth said that in recent months the company had received “numerous signals of interest” from potential buyers. The upper end of bids allegedly reached $200 million.
Specifically, MarsBit founder Van Feng and Cardano founder Charles Hoskinson signaled possible involvement in the deal.
In July, reporters wrote that a group of investors was in the final stages of negotiations to purchase CoinDesk. A month later the publication cut its editorial staff by 45% — about 20 people.
Bullish launched in November 2021. Block.one invested $10 billion in the platform. The exchange was also backed by Thiel Capital and Founders Fund of Peter Thiel, Galaxy Digital, Nomura, billionaire Alan Howard and others.
Recall that in July 2022, Bullish laid off nearly 30 employees (~10% of the staff). A few months later the company terminated its deal to reverse-merge with SPAC Far Peak Acquisition — previously it had intended to list on the NYSE.