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Coinbase’s Plans to Buy Company Behind Mercado Bitcoin Fail: Report

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Coinbase and Brazilian company 2TM, the parent company of Mercado Bitcoin, have reportedly cut talks for the crypto exchange to buy the company.

According to a Bloomberg report Tuesday, 2TM and Coinbase have ended talks for the US-based crypto exchange to buy the Brazilian company, which is valued at more than $2 billion. It’s unclear what caused the purchase not to go through, as 2TM reportedly declined comment and a Coinbase spokesperson said it was simply “committed to the Brazilian market.”

As the parent company of Mercado Bitcoin — one of the largest crypto brokerage firms in Latin America — 2TM solidified its unicorn status in July 2021 after a $200 million funding round, bringing the company to a $2 billion valuation. Cointelegraph reported in March that 2TM was valued at $2.2 billion ahead of Coinbase’s reported plans to buy the company. Additionally, 2TM acquired a majority stake in Lisbon-based crypto exchange CriptoLoja in January.

A December 2021 Coinbase institutional investor report on Latin America indicated interest in expanding operations in Brazil. In April, the Brazilian Senate passed legislation regulating cryptocurrencies in the country, which is expected to be signed by President Jair Bolsonaro by the end of 2022. Rio de Janeiro, Brazil’s second most populous city, also announced in March that it would accept Bitcoin (BTC) payments for taxes related to urban real estate within city limits beginning in 2023.

Related: Cointelegraph’s Brazilian version reveals the top 10 people in crypto and blockchain

Coinbase, one of the largest crypto exchanges in the United States, has reportedly made offers to buy other crypto and blockchain companies around the world. In January 2021, Coinbase announced the acquisition of the Bison Trails blockchain infrastructure platform as well as the Routefire platform for enhanced trade execution. In April, Cointelegraph reported that the exchange was planning to buy major Turkey-based crypto firm BtcTurk for $3.2 billion.

Cointelegraph reached out to 2TM but received no response at the time of publication.