Coinbase has no longer shown interest in acquiring 2TM Group, a Brazilian cryptocurrency business. The two firms have been in merger and acquisition negotiations since late last year and were in the last stages of the process.
The 2TM Group owns Mercado Bitcoin, Brazil’s first Bitcoin exchange. A week after Coinbase named Fabio Tonneto Plein as the head of its business in Brazil, 2TM Group ended talks about buying the company, which was about to be bought.
Coinbase Retracts its Steps on Acquiring 2TM Group
According to Bloomberg, there are speculations that the transaction would not proceed as anticipated. Coinbase has previously shown interest in acquiring a minority or majority stake in 2TM. Acquisition discussions began in late 2021, and the transaction was approaching a conclusion.
In March of last year, 2TM retained the services of JPMorgan Chase & Co. to provide guidance on this transaction. The reason for the cessation of these acquisition discussions remains unknown. They also do not know whether they would go back and try to work out a new deal.
In December of last year, 2TM raised $50 million from a variety of cryptocurrency investors. The money was used to accelerate the company’s growth into additional Latin American nations. 2TM was able to buy a majority stake in CriptoLoja, a digital asset market in Portugal.
More Expansion for Coinbase
Coinbase is the United States’ largest bitcoin exchange. In April of last year, the exchange was granted a direct listing on NASDAQ, with a market capitalization of $27.5 billion. The exchange has demonstrated a dedication to worldwide expansion and user acquisition.
According to Brian Armstrong, the exchange’s CEO, the worldwide cryptocurrency investor population might reach one billion during the next one to two decades. Coinbase was determined to be a part of this expansion.
Apart from 2TM, Coinbase is in discussions to acquire BtcTurk, a Turkish cryptocurrency exchange, for $3.2 billion. This transaction is likewise not yet complete. In March, Coinbase revealed its intentions to launch a marketplace for non-fungible tokens (NFTs). The marketplace is still under beta testing, and users who have been granted access to it are not required to pay transaction fees. This, however, will only be possible for a short period.