Following the financial challenges resulting from FTX’s collapse, CoinDesk, a prominent cryptocurrency news site, is undergoing acquisition. Bullish, a crypto exchange led by former New York Stock Exchange president Tom Farley, has completed the acquisition in an undisclosed all-cash transaction, as initially disclosed by The Wall Street Journal.
The acquisition is expected to have no impact on CoinDesk’s existing management team, as the platform will operate “as an independent subsidiary within Bullish.” Additionally, CoinDesk will establish an editorial committee headed by former Wall Street Journal editor-in-chief Matt Murray.
While CoinDesk initially brought attention to the financial issues within FTX’s balance sheet in November of last year, the repercussions affected its parent company, Digital Currency Group (DCG). DCG, a crypto-focused venture capital firm that acquired CoinDesk in 2016 for $500,000, faced challenges when its crypto lender subsidiary, Genesis, had funds entangled in FTX, leading to FTX’s collapse.
In September, Genesis filed a lawsuit against DCG seeking to recover $620 million in unpaid loans. Both DCG and Genesis are also confronted with a lawsuit from New York Attorney General Letitia James, alleging that the companies misled investors, resulting in a loss exceeding $1 billion.
Barry Silbert, the founder of DCG, expressed on X (formerly Twitter) that CoinDesk was among the company’s “best investments of all time.” Silbert added that he is “incredibly proud of CoinDesk’s growth & development over the last seven years and its transformation into an award-winning media & events company.”
CoinDesk covered the news of the acquisition, although its report does not officially confirm the transaction. According to the Journal, CoinDesk began exploring a potential sale in January and implemented layoffs affecting approximately 16 percent of its workforce in August.
Tom Farley, Bullish’s leader, stated in a release, “With its acclaimed editorial coverage, premier events and market-leading data and indices, CoinDesk continues to shape the global crypto and blockchain ecosystem.”
Farley also mentioned that Bullish plans to inject capital into several of CoinDesk’s growth initiatives, facilitating the launch of new services, events, and products.
In a separate development reported by the Journal earlier this month, Bullish is also a contender to acquire the remaining assets of FTX, potentially paving the way for the resurrection of the distressed exchange.