Per a report from TheBlock, competitor CoinDesk cuts its workforce almost in half as the company prepares to complete a major deal. Crypto reporter Frank Chaparro reviewed an internal memo announcing the decision today.
CoinDesk Goes Through Tough Times To Prepare For New Owners?
According to the report, the crypto news outlet will host an “all-hands meeting” later to provide further details. CoinDesk is letting go of around 20 of its current editorial staff.
The document reviewed by Chaparro stated:
The purpose of the meeting is to inform everyone that today several roles, predominantly in our media team, were impacted by a reduction in force. This is an incredibly difficult message to send to everyone over email and yet I also wanted everyone at CoinDesk to know as soon as possible what is happening today. This is an incredibly difficult message to send to everyone over email and yet I also wanted everyone at CoinDesk to know as soon as possible what is happening today.
The decision to sell the crypto news outlet, which reported around $15 million in revenues in Q2, 2023, stems from the financial issues experienced by its parent company, Digital Currency Group (DCG). As the crypto market entered a persistent downtrend, companies in the nascent asset class were forced into bankruptcy protection.
DCG and some of its subsidiaries, including CoinDesk and Genesis, stand amongst those needing financial relief. In that sense, DCG is preparing to complete a $125 million deal for the crypto news outlet to an investor group spearheaded by Tally Capital and Capital6.
In an interview for Benzinga, legendary investors Tim Draper called the sale a “sweet deal” for the investor group. Draper, a renowned crypto bull, believes CoinDesk will continue gaining relevance as the world migrates to a “Bitcoin Standard.”
Commenting on the chances of the deal completing, Bloomberg Intelligence’s James Seyffart stated that “worse” might be over for the crypto news outlet. Via his X account, the expert said:
20 People. So not *as* bad as it sounds. But obviously not good. Have to assume this means the deal is getting closer and closer to being done though.
As of this writing, Bitcoin is trading at $29,400 with sideways movement in today’s trading session.
Cover image from Unsplash, chart from Tradingview
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