TLDR
- Coinbase has ended negotiations to acquire stablecoin company BVNK in a deal worth $2 billion.
- Both Coinbase and Mastercard were in advanced talks to buy BVNK before the decision to walk away.
- A spokesperson for Coinbase confirmed that both parties agreed not to proceed with the acquisition.
- BVNK raised $50 million last December and was valued at $750 million.
- Visa made a strategic investment in BVNK earlier this year, although the exact amount was not disclosed.
Coinbase has ended talks to acquire British startup stablecoin BVNKa deal reportedly valued at $2 billion. Sources revealed that both Coinbase and Mastercard had been in advanced negotiations to buy BVNK. However, after entering into exclusive talks, the two parties mutually decided not to proceed with the deal.
Coinbase and BVNK end acquisition talks
Coin base is confirmed the decision to abandon the acquisition in a statement. “After discussing a potential acquisition of BVNK, both parties agreed not to move forward,” a Coinbase spokesperson said. This marks the end of acquisition discussions, which had raised expectations of a major move for Coinbase into the stablecoin sector.
The talks had initially piqued the interest of both parties due to BVNK’s work on stablecoin infrastructure. The company offers solutions for integrating stablecoins into payments, and this acquisition could have given Coinbase expanded market reach. Sources had speculated that the deal would benefit Coinbase by improving its stablecoin business, particularly with its existing stake in Circle, the issuer of USDC.
BVNK’s growth and investment background
BVNK had raised $50 million in funding last December, valuing the company at $750 million. The company’s focus is on building stablecoin infrastructure, and it has attracted attention from major investors, including Visa, which made a strategic investment earlier this year. However, despite this growing support, Coinbase and BVNK have now agreed to end negotiations.
Stablecoins has seen impressive growth over the past year, with the total market capitalization exceeding $300 billion. This growth has attracted interest from various players in the crypto and fintech space, including Coinbase. Still, the stalled acquisition underscores the challenges even well-funded startups face when making big deals in the crypto industry.
