The talks of a possible acquisition of Mercado Bitcoin (2TM) by Coinbase (COIN) have broken up. Mercado and Coinbase have stopped talks over the US crypto exchange, picking up the Brazilian company for $2B. it is still not clear the reason behind the break-up as neither 2TM nor Coinbase has spoken out on the matter.
Coinbase reiterated its commitment to the Brazilian market and stated that it was not immediately obvious the reason the deal failed to reach its potential.
Earlier reports had indicated that Coinbase was quite close to acquiring 2TM, the unicorn company owning Mercado Bitcoin and the deal was to have closed in April.
2TM turned into a Unicorn after a $100M fundraising round upped the company’s worth above the $2B mark. Mercado established its position as one of the top crypto companies in Latin America.
With the exchange rumored to be taking over Mercado 2TM being made public in March, reports emanated that the company was worth $2.2B. earlier 2TM had also purchased a crypto exchange based in Lisbon, CriptoLoja, in January.
With Coinbase Revealing Plans To Expand In LATAM, The Reason For The Deal Not Materializing Remains Unknown
In December last year, an institutional Coinbase report covering Latin America indicated the immense potential for growth in Rio de Janeiro, the capital city of the country and its second-largest city. President Jair Bolsonaro is expected to sign the bill into law this year following its adoption by the Brazilian Senate in April.
Rio de Janeiro will also accept Bitcoin payments for its taxes on real estate in urban and municipal areas starting from 2023.
The company is a US-based crypto exchange and has already made acquisition bids of other crypto and blockchain companies around the world. For instance, Bison Trails, a blockchain infra platform, and Routefire, an upgraded trading platform, were acquired by Coinbase in January last year. These acquisitions will help the exchange enhance its trade execution.
The company was also reportedly planning to buy major Turkey-headquartered crypto firm BtcTurk for $3.2B.