Rumor: Binance Borrowed CoinMarketCap To Buy Back CoinDesk
- There are rumors that Binance is looking to borrow CoinMarketCap’s hand to buy the leading cryptocurrency news site CoinDesk.
- CoinDesk has been for sale since January 2023, when the parent company Digital Currency Group and lending branch Genesis were in crisis and were aggressively demanded money by creditors.
- Digital Currency Group gives CoinDesk’s valuation as $300 million, but the actual figure could be much lower and is rumored to be around $75 million.
According to a source from Blockworks, the market-leading cryptocurrency news site CoinDesk has been contacted by Binance Capital Management for possible acquisition. The source confirmed that Binance Capital Management is using CoinMarketCap as the agent to promote the CoinDesk acquisition agreement.
CoinDesk is a news website specializing in Bitcoin and cryptocurrencies. Founded in May 2013, CoinDesk is considered a news site for many types of assets through media channels such as Website, Social Media, Video, and podcasts,…
Binance Capital Management is an entity registered in the British Virgin Islands, owning a subsidiary acquired in 2020 for $ 400 million, a crypto data statistics site CoinMarketCap, established in Delaware (USA).
Binance is committed to letting CoinMarketCap operate independently, and there is no relationship between the two, even though it has been shown to have biased actions towards Binance.
On the CoinDesk side, it has been for sale since the end of November 2022, when the parent company Digital Currency Group and the lending branch Genesis were in crisis and were aggressively demanded money by creditors. Genesis then declared bankruptcy, forcing Digital Currency Group to consider selling off some of its assets to consolidate financial resources, including CoinDesk.
However, selling Coindesk could be a wrong decision by DCG because it is unrelated to its business. Genesis’ troubles could force DCG to choose between its subsidiaries should DCG decide to discontinue the Genesis business so CoinDesk and Grayscale can continue to grow.
It is worth mentioning here that the article investigating the situation of the Alameda Research fund published by CoinDesk in early November 2022 is considered the starting point for the current crisis, leading to the collapse of FTX – Alameda later that was only six days, then swept Genesis and its parent company, Digital Currency Group. CoinDesk reporters even received a journalism award for the above article, becoming the first crypto newsroom to be honored by traditional journalism.
Digital Currency Group gives CoinDesk’s valuation as $300 million, but the actual figure could be much lower and is rumored to be around $75 million. Digital Currency Group 2016 bought back the ownership of the news site for just $500,000.
A Blockworks source said that Binance Capital Management has actively approached CoinDesk since February. Still, the initial discussions between the two sides broke down because the site was worried that the reporter team would massively leave if repurchased by Binance. Therefore, the world’s largest cryptocurrency exchange is considering using CoinMarketCap as the named company for this deal.
When interviewed by Blockworks, CoinDesk CEO Kevin Worth stated that decisions have yet to be made on the news site’s offering, confirming the company is exploring other ways to raise capital.
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