CoinDesk, a prominent player in the world of crypto media, has announced that it will be laying off 45% of its editorial staff. The company is also exploring potential avenues to sell the business. CEO Kevin Worth stated that the layoffs were necessary to ensure the company’s financial stability and to prepare for the impending sale of CoinDesk Inc.
A total of 20 employees have been affected by the layoffs, which represents a 16% reduction in the overall workforce. This move is part of a larger strategic vision, as CoinDesk’s parent company, Digital Currency Group (DCG), has been in discussions to bring on strategic investors. While the layoffs are unfortunate for the employees and the company, they are seen as a necessary step for future growth and transition.
It has been reported that DCG is close to finalizing a significant sale of a stake worth over $125 million, backed by crypto investor Matthew Roszak of Tally Capital. Despite this sale, DCG will maintain a stake in CoinDesk and continue to be involved in the media property.
Onboarding New Investors
In a recent shareholder letter, DCG disclosed that CoinDesk has enlisted the help of financial advisers to facilitate the process of onboarding new institutional and strategic investors. These discussions have been ongoing for several months and signify the seriousness and interest surrounding the initiative within the investment community.
CoinDesk’s efforts align with its strong performance in Q2 2023, where it achieved $15 million in revenues from the Consensus 2023 festival held in April. This strategic shift is part of DCG’s broader business operations, as the company actively seeks new investors for its ventures, including its crypto exchange subsidiary Luno.
Why is CoinDesk laying off staff?
CoinDesk is laying off staff to ensure the company’s financial stability and prepare for a sale of the business.
Which employees are affected by the layoffs?
The layoffs primarily affect the editorial team at CoinDesk.
Will CoinDesk be completely sold?
No, CoinDesk’s parent company, Digital Currency Group, will maintain a stake in the media property.
Is CoinDesk still open for business?
Yes, CoinDesk will continue to operate despite the layoffs and potential sale.
What is Digital Currency Group’s plan for CoinDesk?
Digital Currency Group is exploring avenues to bring on strategic investors for CoinDesk and position the company for long-term success.
What other ventures is Digital Currency Group involved in?
Digital Currency Group operates in various sectors within the crypto ecosystem and is actively seeking investors for its ventures, including its crypto exchange subsidiary Luno.
What was the financial performance of CoinDesk in Q2 2023?
CoinDesk achieved $15 million in revenues attributed to the Consensus 2023 festival held in April.