Cryptocurrency Exchange Bullish Buys Out CoinDesk
Tom Farley, a former New York Stock Exchange President, made headlines with his company Bullish's recent acquisition of CoinDesk, a media company deeply entrenched in the world of cryptocurrency.
This development follows CoinDesk’s earlier coverage of the crypto magnate Sam Bankman-Fried, whose ventures sent ripples across the market, exacerbating financial woes for CoinDesk’s parent company. Bullish, under Farley’s leadership, has expressed its intent to retain CoinDesk’s existing management team, with Kevin Worth at the helm, while allowing the publication to maintain its autonomy within the Bullish umbrella.
Bullish, launched in November 2021 and backed by influential investors like Peter Thiel’s Founders Fund and Louis Bacon’s hedge fund, witnessed Farley’s leadership during his tenure as NYSE president from 2014 to 2018. Despite pulling out of a $9 billion public offering last year, Bullish remains active and competitive, even positioning itself as a contender for acquiring the remains of the defunct FTX crypto exchange.
CoinDesk, with diversified business segments encompassing media, events, and indexes, reported a revenue of $50 million last year. Farley expressed optimism about the resurgence of the digital assets industry, emphasizing Bullish’s eagerness to leverage CoinDesk’s successful business endeavors amidst the crypto market’s bullish trend.
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CoinDesk’s coverage in November 2022, unveiling financial data from FTX founder Bankman-Fried’s Alameda Research, raised concerns about financial entanglements between Alameda and FTX. This disclosure triggered a wave of customer withdrawals, culminating in FTX’s bankruptcy and subsequently impacting CoinDesk’s parent company, DCG. Genesis Global Capital, a DCG subsidiary, filed for bankruptcy, while TradeBlock and HQ shut down operations amidst the industry-wide fallout.
Faced with financial challenges, CoinDesk began exploring strategic options, including potential sales, leading to internal layoffs in August after enlisting Lazard’s investment bankers for guidance earlier in the year.