- Foresight Ventures buys majority in The Block for $70M, plans leadership changes.
- The Block’s CEO Larry Cermak remains, emphasizing business continuity post-acquisition.
- CoinDesk faces a 45% staff cut, a potential sale at $125M amidst crypto media shifts.
Foresight Ventures recently acquired a controlling interest in The Block, a cryptocurrency media company, at a valuation of $70 million. This investment primarily facilitated the buyout of Mike McCaffrey’s stake in the company, following his resignation due to revelations of secretly receiving millions from ex-FTX CEO Sam Bankman-Fried.
Larry Cermak, CEO of The Block, announced the transaction on X (previously known as Twitter), confirming his continued leadership role. He emphasized that the acquisition would not affect other aspects of the business. Cermak also shared the challenges he faced in managing the company and working toward its long-term viability while negotiating this deal.
Following the acquisition of a majority stake in The Block by Foresight Ventures, Forest Bai, CEO of Foresight, is set to become the chairman of The Block. Additionally, Tony Cheng, a partner at Foresight Ventures, will also join The Block’s board of directors. This arrangement grants Foresight Ventures two out of the four board positions at The Block, as reported by Axios.
Foresight Ventures already holds minority stakes in three other crypto media organizations based in Asia. These include BlockTempo and Foresight News, both Chinese platforms, and CoinNess, which operates in the Korean language. This expansion into The Block represents a significant move for Foresight Ventures in the crypto media landscape.
In August, CoinDesk, a key player in cryptocurrency media, experienced a significant downsizing, with a reduction of 45% of its editorial staff. This decision was part of a broader strategy by its parent company, Digital Currency Group (DCG), which is looking to sell the platform.
Prior to these layoffs, there had been reports indicating that CoinDesk was on the verge of being sold at a valuation of around $125 million. The negotiation for this sale was reportedly in its final stages, led by a group of investors. This group is spearheaded by Matthew Rojak from Tally Capital and Peter Wessenes of Capital 6. The potential sale of CoinDesk, alongside the major staff cuts, highlights substantial changes and challenges within the cryptocurrency media sector.
