Coinbase Global eyes acquisition of Mercado Bitcoin owner 2TM

Coinbase Global eyes acquisition of Mercado Bitcoin owner 2TM

2TM aims for Latin American market space with acquisitions in Mexico, Chile, Colombia, and Argentina.

Leading cryptocurrency exchange, Coinbase Global (COIN) is apparently in talks for taking over 2TM – the owner of Brazil’s largest crypto exchange Mercado Bitcoin.

Credible reports have mentioned that Coinbase and 2TM have been negotiating the speculated acquisition ever since last year, while the industry expects the agreement to be announced by end of April.

In 2021, Mercado Bitcoin reported 1.1 million additional customers, taking the crypto exchange’s total customer network to 3.2 million, parallelly hiking up the company’s trading volume to $7.1 billion.

Meanwhile, the 2TM’s valuation soared to $2.1 billion, thanks to the funding worth $200 million raised in Series B round followed by another $50 million in second closing of the investment round in late 2021.

During the Brazilian cryptocurrency adoption wave that ended up tripling stablecoin trading in 2021, global exchanges including Binance, Coinbase, and Crypto.com shifted focus to the Latin American market landscape.

In November 2020, Coinbase launched an engineering hub in Brazil and introduced different positions to scale up its team in the country.

Meanwhile, Binance CEO Changpeng Zhao announced plans to acquire banks and payment processors in Brazil and signed a Memorandum of Understanding (MoU) for taking over Brazilian securities brokerage Sim;paul Investimentos.

In January, 2TM secured a majority stake in CriptoLoja, Portugal’s first regulated cryptocurrency exchange and plans to expand business in Latin America via acquisitions in Mexico, Chile, Colombia, and Argentina.

Besides Mercado Bitcoin, 2TM is also the owner of companies including Blockchain Academy, MB Digital Assets, Meubank, Bitrust, and MezaPro.

Additionally, Coinbase also pursued Mexican crypto exchange Bitso as a potential acquisition target, however, the cryptocurrency players did not seem to have reached any mutual agreement.

Source Credit: https://www.coindesk.com/business/2022/03/27/coinbase-said-near-deal-to-buy-owner-of-brazils-largest-crypto-exchange-report/