Crypto exchange Coinbase (COIN) and U.K.-based fintech BVNK have ended acquisition talks, a spokesperson for Coinbase confirmed to Fortune. Notably, the deal had reached the due diligence stage and included an exclusivity agreement in October, which meant that BVNK couldn’t consider offers from anyone else. However, it’s unclear why the two companies decided not to move forward. Coinbase simply said both sides “mutually agreed” to walk away, and BVNK declined to comment.
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BVNK, which helps businesses use stablecoins for payments and cross-border transfers, was reportedly valued at around $2 billion. If the deal had gone through, it would have been one of the largest ever for a stablecoin startup. Although this deal didn’t happen, interest in stablecoin mergers and acquisitions remains strong. In fact, Modern Treasury, a late-stage payments company, bought stablecoin startup Beam for around $40 million in October.
Additionally, large companies are becoming increasingly interested in the space. For instance, Mastercard (MA), which once considered buying BVNK, is now in talks to acquire crypto infrastructure firm Zerohash for up to $2 billion. It is worth noting that stablecoins are designed to hold a steady value by being tied to assets like the U.S. dollar, thereby making them less volatile than cryptocurrencies like Bitcoin. Supporters believe that they can modernize old financial systems, reduce fees, and speed up global payments.
Is COIN a Good Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Coinbase stock based on 15 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average COIN price target of $400.63 per share implies 31.9% upside potential.
