According to sources, Coinbase and Mercado Bitcoin’s parent company, 2TM, have stopped talks about a prospective acquisition of the company. According to a Bloomberg article published on Tuesday, talks between 2TM and Coinbase about the US crypto exchange purchasing the $2 billion Brazilian startup have come to a halt.
However, given that 2TM declined to comment and a Coinbase spokesman stated that the company was “dedicated to the Brazilian market,” it’s unclear why the deal fell through.
2TM became a unicorn in July 2021, when a $200 million fundraising round lifted the company’s worth above $2 billion, cementing its position as one of Latin America’s top crypto brokerage firms. Before Coinbase’s alleged plans to acquire 2TM became public in March, publications put the company’s value at $2.2 billion. 2TM also purchased CriptoLoja, a crypto exchange based in Lisbon, in January.
In December 2021, a Coinbase institutional investor report on Latin America indicated potential in growing operations in Brazil. Brazil’s Senate approved a proposal to regulate cryptocurrencies in the country in April, and President Jair Bolsonaro is anticipated to sign it into law before the end of 2022. Rio de Janeiro, Brazil’s second-largest city, said in March that beginning in 2023, it will accept Bitcoin (BTC) payments for taxes on urban real estate within city borders.
Coinbase, one of the major crypto exchanges in the United States, has reportedly made proposals to buy other crypto and blockchain companies around the world. Coinbase announced the acquisition of Bison Trails, a blockchain infrastructure platform, as well as the Routefire platform for enhanced trade execution, in January 2021.
