Cryptocurrency investors found themselves on edge as headlines broke regarding Coinbase’s cancellation of a massive $2 billion deal. This move coincided with Bitcoin plummeting below $103,000, adding to the uncertainty looming over the market. The delay in government proceedings and the Supreme Court’s apparent indecision have added pressure to volatile markets. The focus now is on why the BVNK deal fell through.
Breaking News in the World of Bitcoin
Initially, the acquisition was set to mark one of the biggest sales in the crypto industry. Speculation about Coinbase’s interest in the UK-based firm, BVNK, had reached its peak. However, the American crypto giant has now backed out of the deal, increasing market concerns.
In October, BVNK had secured an agreement ensuring it would not entertain offers from other parties, making the acquisition highly probable. Stablecoin transactions involving GENIUS in the USA had become legally robust, and Coinbase was expected to leverage BVNK’s global stablecoin services. This kind of acquisition effort, given the licenses at hand, is not unusual in the crypto market.
A Coinbase spokesperson noted the firm’s constant pursuit of new opportunities and stated that after evaluations, both parties opted to terminate the process. With giants like Ripple and Coinbase making billion-dollar acquisitions, their actions have resonated throughout this year. Ripple independently acquired three companies for $2.4 billion, while Coinbase’s $2.9 billion acquisition of Deribit marked a significant milestone.
Recently, discussions emerged about Coinbase and Mastercard potentially acquiring Zerohash for between $1.5 and $2 billion. Considering Zerohash’s status as a stablecoin entity, this might indicate a shift in focus for potential acquisitions.
There doesn’t seem to be hesitation based on any looming uncertainty surrounding the crypto market’s future. This move doesn’t reflect a backing away due to insecurity, but rather a strategic pivot in acquisition targets.