Coinbase will continue with its global acquisition strategy by purchasing the Brazilian company 2TM, the parent company of Mercado Bitcoin.
According to information from Estadão, the third most read newspaper by the 212 million inhabitants of Brazil, the Coinbase acquisition could be completed next month. Negotiations for the purchase have taken place throughout 2022.
Mercado Bitcoin is the largest cryptocurrency broker in Latin America, whose parent company, 2TM, cemented its unicorn status as a billion dollar company in 2021. Valued at $2.2 billion, 2TM has also pursued an acquisition strategy, particularly in Portuguese-speaking countries. 2TM Bitcoin Market acquired Lisbon-based Portuguese crypto exchange CriptoLoja in January.
2TM now encompasses Meubank, MB Digital Assets, CriptoLoja, Bitrust, Blockchain Academy, MezaPro, Wuzu, and Portal do Bitcoin.
For Coinbase, the planned purchase of 2TM shows that its global acquisition strategy is growing. Following the acquisition of an Indian AI startup to improve customer service, as angry customer feedback proved to be too much, The San Francisco-based exchange also recently purchased blockchain infrastructure platform Bison Trails.
Coinbase’s most recent report for institutional investors on Latin America, “crypto in Latam”, mentions Brazil 31 times, while Mexico (with a larger GDP but with a lot of interest in cryptocurrencies) was mentioned only 17 times.
The report states that in Brazil:
“Direct cryptocurrency trading is growing rapidly. Local cryptocurrency exchange Mercado Bitcoin has seen transaction volume increase sevenfold year-on-year through August.”
As a cornerstone of the group’s expansion plans in Latin America, The world’s second-largest cryptocurrency exchange has also been looking for business development managers and executives as part of a hiring spree in Brazil.
It is not surprising: Brazil is a hotbed of Bitcoin adoption. The capital, Rio de Janeiro, will accept cryptocurrencies for the payment of certain taxes in 2023, and according to triple A, more than 10 million Brazilians own cryptocurrencies.
Cointelegraph reported that 2021 was the year of “mass adoption” in Brazil, as UFC stars and politicians sprang into action.
Cointelegraph has reached out to Coinbase, 2TM, and Estadão for comment and will update this article when possible.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.