• CoinDesk, a crypto-based firm, is weighing its options regarding a potential sale as it looks to attract growth capital.
• According to the WSJ, the firm has recently received offers above $200 million.
• This potential sale is a confirmation of Digital Currency Group’s (DCG) financial troubles, as the group had recently announced to its shareholders that it would halt dividends immediately.

CoinDesk, a crypto-based firm owned by Digital Currency Group (DCG), has begun exploring its options regarding a possible sale as it looks to attract growth capital. A report from the Wall Street Journal (WSJ) states that the firm has recently received offers above $200 million. If the deal goes through, the amount would amount to an almost 40,000% return on its initial investment.

CoinDesk was acquired by DCG in 2016 for an amount between $500,000 to $600,000. Despite the offer, however, CoinDesk is now seeking advice from Lazard, a specialist firm focused on mergers and restructuring. This potential sale is a confirmation of DCG’s financial troubles, as the group had recently announced to its shareholders that it would halt dividends immediately. In its explanation, DCG claimed that the decision was to help it improve its balance sheet and ultimately “preserve liquidity.”

In another related issue, the WSJ reported that DCG is currently looking for ways to save its business and grow its capital. This is usually done by searching for new investors, but that is proving difficult due to the bear market. The report also states that DCG has approached some of its investors to ask for more capital and to extend the terms of its existing loans.

The news of CoinDesk’s potential sale comes at a time when the crypto market is facing a lot of uncertainty. Overall, the market has been on a downward trend since mid-2018 and there has been a lot of news regarding the closure of crypto-related businesses as well as layoffs. Furthermore, the market has been facing a lot of regulatory scrutiny, which has also impacted the prospects of many crypto-related firms.

It remains to be seen if CoinDesk will go ahead with the sale, as the firm is still weighing its options. Regardless of the outcome, the potential sale is a clear indication of the current state of the crypto market. It also highlights the importance of ensuring that firms have sufficient capital to weather any downturns in the market and that their business models are robust enough to handle any shifts in the regulatory landscape.