Coinbase's plans to purchase firm behind Mercado Bitcoin fall through: Report
Coinbase and Brazilian company 2TM, the parent company of Mercado Bitcoin, have reportedly scrapped talks around the crypto exchange purchasing the firm.
According to a Tuesday Bloomberg report, 2TM and Coinbase have ended discussions around the United States-based crypto exchange buying the Brazilian company, which was valued at more than $2 billion. It’s unclear what led to the purchase not going through, as 2TM reportedly declined to comment and a Coinbase spokesperson said it was simply “committed to the Brazilian market.”
Coinbase and 2TM scrapped talks over a possible purchase by the exchange of the Brazilian cryptocurrency brokerage https://t.co/HmZxDj7Koi
As the parent company of Mercado Bitcoin — one of the largest crypto brokerage firms in Latin America — 2TM cemented its unicorn status in July 2021 following a $200 million funding round, pushing the company ahead of a $2 billion valuation. Cointelegraph reported in March that 2TM was valued at $2.2 billion ahead of Coinbase’s reported plans to purchase the firm. In addition, 2TM acquired a controlling stake in Lisbon-based crypto exchange CriptoLoja in January.
A Coinbase institutional investor report on Latin America from December 2021 suggested interest in expanding operations in Brazil. In April, Brazil’s Senate approved a law to regulate cryptocurrencies in the country, expected to be signed into law by President Jair Bolsonaro by the end of 2022. Rio de Janeiro, the second-most populous city in Brazil, also announced in March it will accept Bitcoin (BTC) payments for taxes related to urban real estate within city limits starting in 2023.
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