CoinDesk, a cryptocurrency news and information platform, announced Tuesday that it has acquired TradeBlock, a cryptocurrency data and analytics company, for an undisclosed amount. The deal comes as bitcoin explodes higher, albeit with great volatility. Bitcoin has more than quadrupled over the past year, but fell as much as 17% Monday.
Digital Currency Group owns CoinDesk and had a minority stake in TradeBlock. DCG also owns Grayscale Investments, which has what’s probably the closest thing to a bitcoin exchange-traded fund: the Grayscale Bitcoin Trust. The Trust has $19.1 billion of assets; and its market price represents about a 30% premium to its net asset value.
As for the rationale of the CoinDesk-TradeBlock deal, with bitcoin rising through the roof, pricing data becomes more important.
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“Mainstream acceptance of bitcoin is accelerating right now as Wall Street wakes up to its potential. With that has come an urgent need for the kind of robust data and professional tools that enable institutions to participate,” CoinDesk Chief Executive Kevin Worth said in a statement. “We are combining the network effect of CoinDesk’s growing global audience and its reputation as the preeminent crypto and blockchain media company with TradeBlock’s world-class prices, indexes and trading tools.”
Worth sees CoinDesk playing a similar role to what Bloomberg does in traditional financial markets. “We will be crypto investors’ go-to destination for unified media; events; research; pricing as well as data,“ he said.
Bitcoin recently traded at $33,882, down 0.4%. It has skyrocketed 214% over the past three months.
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