The Wall Street Journal broke this story on CoinDesk.

A group of investors, led by Matthew Roszak of Tally Capital and Peter Vessenes of Capital6, is finalizing a deal to acquire CoinDesk, a media company focused on cryptocurrency. The enterprise value of the transaction is approximately $125 million. CoinDesk’s parent company, Digital Currency Group (DCG), is expected to retain a stake in the media, events, data, and indexes business as part of the deal. CoinDesk’s current management is also expected to remain in place.

DCG had previously explored options, including a partial or full sale of CoinDesk, with unsolicited offers exceeding $200 million. CoinDesk generated $50 million in revenue last year from online advertising, index services, and events. (Wall Street Journal)

The deal comes at a challenging time for DCG, as its lending arm, Genesis Global Capital, faced bankruptcy, and its institutional-trading platform TradeBlock and wealth-management unit HQ closed. DCG has been dealing with the aftermath of high-profile industry bankruptcies and a decline in token prices.

Bitcoin and major cryptocurrencies have seen a rebound in prices this year, driven partly by increased investor risk appetite. However, regulatory scrutiny of the crypto industry has also intensified, with the Securities and Exchange Commission suing exchanges Binance and Coinbase (NASDAQ: COIN), as well as taking legal action against DCG’s Genesis and Gemini over an alleged $900 million crypto-lending program violation of investor-protection laws.

Related Story:  Binance Yesterday. Coinbase Today. SEC On The Warpath.