Coinbase Global Inc (NASDAQ: COIN) went up nearly 9.0% in the stock market on Monday following reports that it was in talks to buy the largest crypto brokerage in Latin America.
Coinbase to buy Mercado Bitcoin parent
Coinbase has been negotiating to pick up 2TM – a $2.20 billion company that owns Mercado Bitcoin. An agreement is expected as soon as next month, reported Estadão on Monday.
The acquisition will help Coinbase emerge as a market leader in Latin America. Brazil’s crypto market is expected to top $25 billion in the near future.
The report suggests that Coinbase is keeping at its global expansion through acquisition strategy. Last year, it bought blockchain infrastructure platform, Bison Trails, for roughly $80 million.
Coinbase and 2TM are yet to comment
The news comes after a year of mass adoption in Brazil as a notable UFC fighter Matheus Nicolau agreed to receive his earnings in Bitcoin. Details of the potential agreement are yet to be disclosed.
Last week, legendary short seller Jim Chanos betted against Coinbase and said the crypto company was unlikely to be profitable in 2022.
Still, the stock has done well over the past two weeks. It’s recovered more than 30% in concert with the rising Bitcoin price that topped $47,000 for the first time this year on Monday.
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