Hoskinson and Marsbit Interested in Acquisition
Wang Feng, the founder of Chinese crypto asset (virtual currency) news site Marsbit, expressed interest in acquiring cryptocurrency media CoinDesk on the 19th.
In addition to Marsbit, Cardano founder Charles Hoskinson also released a YouTube video discussing the acquisition of CoinDesk.
Mr. Feng said:Tweetbottom.
I believe in the future of the cryptocurrency industry and want to provide a solid infrastructure, whether it’s an exchange or a media.
Marsbit, a subsidiary of Element Finance, intends to acquire CoinDesk’s media and conference business in partnership with a number of high-profile funds.
Feng also urged funds and companies interested in the deal to get in touch. Element Finance is an NFT (non-fungible token) market founded by Mr. Feng.
Marsbit’s investors include major cryptocurrency exchange Binance, Huobi, and OK Capital.
Mr. Hoskinson’s thoughts
Buying Coindesk https://t.co/YNJYjKhIlx
—Charles Hoskinson (@IOHK_Charles) January 19, 2023
Hoskinson also released a video on the 20th about his interest in acquiring CoinDesk. Hoskinson said CoinDesk is currently priced at around ¥26 billion ($200 million), according to information from his sources.
Hoskinson said he has an interest in the media business and wants to “find a way to restore the integrity of journalism.” He also suggested financial incentives for the media to operate with integrity, such as fact-checking.
It also mentions the conversion of news to NFT, the contribution of progress by top blockchain projects, and the mechanism for whistleblowing of fraudulent projects.
Hoskinson said the $200 million asking price was “a little too high.” Cryptocurrency conglomerate Digital Currency Group (DCG) acquired CoinDesk in 2016 for about ¥65 million (about $500,000).
Parent company DCG liquidity problem
CoinDesk is one of the companies under the DCG umbrella. DCG is currently experiencing liquidity issues and has announced that it will suspend dividends on its shares.
DCG’s valuation reached about 1.3 trillion yen in early 2022, and its annual revenue at that time reached 130 billion yen. , finances deteriorated.
What is DCG
A major cryptocurrency conglomerate. It has 6 subsidiaries and invests in over 200 blockchain-related startups and over 50 cryptocurrency funds and projects. Major subsidiaries include investment company Grayscale, bitcoin mining company Foundry, Genesis Global Capital, and cryptocurrency media CoinDesk.
DCG-affiliated cryptocurrency lending company Genesis filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code on the 19th. Top creditors include Gemini Trust Company, which operates cryptocurrency exchange Gemini, leading market maker Cumberland DRW, and crypto fund Mirana Ventures.
Relation: Virtual currency lending company Genesis filed for bankruptcy, creditors such as Gemini and Van Eck