Coinbase wears the fintech acquisition crown
Crypto exchange Coinbase is tied with Visma Group, a Norwegian software company, as the top strategic acquirer of fintech businesses over the last decade.
Why it matters: Growth across the sector has come at breakneck speed, making any consolidating force a powerful player in the space.
- Valuations, as well, have soared, increasing the chance of buyer's remorse.
Details: Coinbase has made about 16 acquisitions between 2012 to 2021, according to research from PitchBook.
- That includes the recent acquisition of FairX, a company that could give Coinbase the licenses necessary to begin offering derivatives trading.
- Coinbase is also one of the most active fintech investors, having participated in roughly 147 deals between 2012 and 2021 (that figure may actually be higher, with Coinbase Ventures saying it had over 150 investments as of August).
Of note: The company is said to be in talks to acquire the company behind Brazil's largest crypto exchange, 2TM, per local paper Estadão. 2TM was last valued over $2.1 billion in June.
Bottom line: Coinbase has made acquisitions a key part of its strategy. If its vision of web3 plays out, it will be a behemoth invested in the new Googles and Facebooks of the next decade.