Shares of the cryptocurrency platform Coinbase have risen in price on rumors of an acquisition
Shares of the cryptocurrency exchange platform Coinbase Global Inc. (COIN) rose by 7.87% to $201.41 at auction on March 29. The market capitalization was $45.03 billion. The reason was the message about the purchase of a large cryptocurrency firm, Mercado Bitcoin.
Rumors about the purchase of the largest cryptocurrency exchange platform in South and Central America appeared in the Brazilian newspaper “O Estado de S.Paulo». The publication reported on Coinbase’s interest in acquiring the holding company 2TM, which owns Mercado Bitcoin. 2TM’s valuation exceeds $1 billion. The deal could be closed in April 2022.
For Coinbase, this can be a valuable acquisition, since in Latin America many people buy and sell cryptocurrencies, using them as a direction for investment. This market may exceed $25 billion, and interest in it is growing. In addition, the financial technology market is actively developing in the region, since the traditional banking network in several countries, and digital technologies are spreading rapidly and have already covered a significant part of the population.
As a result, local Fintech startups attract investments from major players such as Berkshire Hathaway. Against this background, expansion into this region may be of strategic importance for Coinbase. This is probably why COIN quotes rose after the publication of rumors.
The Coinbase platform is already available in hundreds of countries, and the number of users of the platform is approaching 90 million. Because of the specifics of the business, COIN quotes with the price of one of the most popular cryptocurrencies – bitcoin. Over the past two months, the cryptocurrency has attracted many new users, the total volume of transactions in cryptocurrencies has also increased.
