San Francisco, Aug 14: Cryptocurrency news company CoinDesk is reportedly slashing its workforce, as a group of investors was likely in the final stages to acquire it for about $125 million, the media reported on Monday.
According to an internal email seen by TechCrunch, Kevin Worth, CEO of CoinDesk, wrote that “several roles, predominantly in our media team, were impacted by a reduction in force”. Crypto News Site CoinDesk Hires Banker to Explore Potential Sale.
“This was a required step to ensure a financially sound business moving forward and to set us on the path to close the deal to sell CoinDesk,” Worth added. CoinDesk was yet to comment on the development.
Last week, reports surfaced that a group of investors is reportedly in final stages to acquire cryptocurrency news company CoinDesk.
CoinDesk is currently owned by crypto conglomerate Digital Currency Group (DCG), which acquired it in 2016.
According to the Wall Street Journal, a group led by blockchain investors Matthew Roszak of Tally Capital and Peter Vessenes of Capital6 were "nearing a $125 million deal for CoinDesk".
CoinDesk is a news site specialising in bitcoin and digital currencies. It also provides guides to bitcoin for those new to digital currencies.
Founded by entrepreneur Shakil Khan in 2013, the site was subsequently acquired by DCG for an estimated $500,000-$600,000. Blockchain.com Layoffs: Top Cryptocurrency Exchange Cuts 25% of Its Workforce Amid Global Economic Meltdown, Nearly 150 Employees Impacted.
In 2017, the company acquired blockchain data and research platform Lawnmower. In 2021, it acquired cryptocurrency data analytics firm TradeBlock.
According to reports, the acquisition of CoinDesk, if it happens, will help strengthen DCG's financial condition.
(The above story first appeared on LatestLY on Aug 14, 2023 10:54 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).