Coinbase's Plan to Acquire Company Behind Mercado Bitcoin Falls Through

Brazilian firm 2TM, the parent company of Coinbase and Mercado Bitcoin, has reportedly called off talks surrounding the cryptocurrency exchange’s acquisition of the company.

2TM and Coinbase have concluded discussions surrounding U.S. cryptocurrency exchange Coinbase’s acquisition of the Brazilian company valued at more than $2 billion, Bloomberg reported Tuesday. It’s unclear what caused the takeover to fall through, and 2TM reportedly declined to comment, with a Coinbase spokesperson saying the company was only “committed to the Brazilian market.”

2TM, the parent company of Mercado Bitcoin, one of Latin America's largest cryptocurrency brokerages, cemented its unicorn status in July 2021 after closing a $200 million funding round, valuing the company at more than $2 billion Dollar. Cointelegraph reported in March that 2TM was valued at $2.2 billion, ahead of Coinbase’s plans to acquire the company. Additionally, 2TM acquired a controlling stake in Lisbon-based crypto exchange CriptoLoja in January this year.

Coinbase’s December 2021 Institutional Investor Report on Latin America shows interest in expanding operations in Brazil. In April, the Brazilian Senate approved a law regulating cryptocurrencies in the country, which is expected to be signed into law by President Jair Bolsonaro by the end of 2022. Brazil’s second most populous city, Rio de Janeiro, also announced in March that it will accept Bitcoin (BTC) within the city limits to pay taxes related to urban real estate starting in 2023.

Coinbase, one of the largest cryptocurrency exchanges in the United States, has reportedly been proposing to acquire other cryptocurrency and blockchain companies around the world. In January 2021, Coinbase announced the acquisition of blockchain infrastructure platform Bison Trails and the Routefire platform to enhance transaction execution. In April, Cointelegraph reported that the exchange planned to acquire major Turkey-based crypto firm BtcTurk for $3.2 billion.