Coinbase and BVNK Walk Away from $2B Mega-Deal – Here’s Why It Matters
Blockchain's biggest 'almost' deal just collapsed—and the fallout could reshape crypto's power structure.
When titans flirt but don't commit
The $2 billion negotiations between Coinbase and BVNK stalled over what insiders call 'valuation differences'—Wall Street code for 'someone got greedy.' The failed merger leaves both players at a crossroads: Coinbase misses a chance to dominate European crypto banking, while BVNK's 'bridging traditional and digital finance' pitch just lost its loudest megaphone.
Market tremors ahead?
Deal failures rarely shock anyone—except the bankers losing their 1% fees. But this collapse hints at deeper cracks: even crypto's blue chips are struggling to price themselves in a market where 'growth' means surviving the next regulatory ambush. One thing's certain—when the industry's golden child and a rising star can't make the numbers work, every other startup's 'projected valuation' just became comedy material.
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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.
