Binance Wants to Acquire CoinDesk Through CoinMarketCap

Crypto news site CoinDesk is being targeted by Binance for acquisition after being put up for sale by parent company Digital Currency Group.

Binance wants to acquire CoinDesk through CoinMarketCap. Photo: CoinDesk

According to sources of Blockworksmarket leading cryptocurrency news site CoinDesk has been contacted by Binance Capital Management for possible acquisition.

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 in the past to have biased actions towards Binance.

Source of Blockworks confirmed that Binance Capital Management is using CoinMarketCap as the agent to promote the CoinDesk acquisition agreement.

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. Genesis then had to declare bankruptcy, forcing Digital Currency Group to consider selling off a part of its assets to consolidate financial resources, including CoinDesk.

It is worth mentioning here that the article investigating the situation of 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 6 days, and then followed 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.

CoinDesk’s valuation is given by Digital Currency Group as $300 million, but the actual figure could be much lower and is rumored to be around $75 million. Digital Currency Group in 2016 bought back the ownership of the news site for just $500,000.

Source of Blockworks said that Binance Capital Management actively approached CoinDesk since February, but the initial discussions between the two sides broke down because the site was worried that the reporter team would massively leave if it was acquired by Binance. Therefore, the world’s largest cryptocurrency exchange is considering using CoinMarketCap as the name company for this deal.

Being Blockworks In an interview, CoinDesk CEO Kevin Worth stated that no decisions have been made on the news site’s offering, confirming the company is exploring other ways to raise capital.

Binance in the past invested $200 million in the famous Forbes Magazine, as well as spent $500 million to support Elon Musk’s acquisition of Twitter.

In addition to CoinDesk, a popular news site in the crypto industry, The Block, was also implicated in the collapse of FTX – Alameda – Genesis when the newspaper CEO was found to have borrowed $43 million from Alameda to expand its operations as well as expand its operations. personal consumption. The other CEO then resigned, and The Block in February 2023 was forced to cut 27 employees.

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