Coinbase to acquire BtcTurk exchange for $3.2 billion
The acquisition is part of a larger effort by Coinbase to improve its international expansion strategy
By Shashank Bhardwaj
Coinbase, the world's second-largest cryptocurrency exchange, is reportedly in a bid to acquire BtcTurk, a nine-year-old Turkish cryptocurrency exchange, as part of its ongoing international expansion strategy.
According to Turkish media outlets, Coinbase has been chasing the opportunity for a while now, and after negotiations, the sale has been closed at $3.2 billion, down from $5 billion. One or both companies have reportedly signed a term sheet, and Coinbase is conducting its due diligence.
BtcTurk, founded in 2013, is one of Turkey's largest and oldest cryptocurrency exchanges, with over four million users. Last year, the exchange handled transactions totalling 1.7 trillion Turkish Lira, which is roughly $116 billion.
The potential acquisition would be in line with Coinbase's plans to expand to every country where it can legally operate crypto entities. According to FXEmpire, Turkey was the sixth-largest in country terms of crypto profitability last year, with investors making over $4.5 billion in cryptocurrency profits. Turkey's strategic location in both Europe and Asia, as well as the country's solid crypto presence, could be extremely valuable for the crypto giant.
Following the completion of the acquisition, Coinbase will be able to offer its services to millions of new customers in the country. Coinbase is also looking for a country director for its Turkish operations.
In March, Brazil's Estadão newspaper reported that Coinbase was also planning to acquire 2TM, the parent company of Latin America-based crypto brokerage firm Mercado Bitcoin. According to the report, negotiations between Coinbase and 2TM have been ongoing since last year, and a deal might be finalised in late April.
Coinbase, however, isn't focusing solely on acquisitions; the company recently released a beta version of its own NFT marketplace and is preparing for an official launch shortly.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash