Coinbase Set To Acquire Turkish Crypto Exchange for $3.2B in May
- Reports indicate Coinbase will be acquiring BTC Turk for $3.2 billion.
- Coinbase’s expansion is noting no hiccups with the recent launch of its NFT marketplace.
- The acquisition comes at a time when the market is stuck in an uncertain zone.
Coinbase has been eyeing the opportunity for a while now, and after negotiations, the deal has been finalized at $3.2 billion, down from $5 billion.
The exchange, which boasts of over 4.5 million users, was the first cryptocurrency exchange in Turkey when it launched in 2013 and currently works with seven major banks in the country, allowing for the transfer of money through them.
Last year, the exchange conducted transactions worth 1.7 Trillion Turkish Lira, which translates to approximately $116 billion. Acquiring BTC Turk would open doors for Coinbase to expand into the country, which has a significant presence of crypto there.
As reported by FXEmpire, the country last year was the sixth-largest country when it came to profitability, with investors gaining over $4.5 billion in profits in cryptocurrencies.
But acquisitions aren’t the only way Coinbase is targeting growth, as just recently, the company launched its own NFT marketplace’s beta version and is gearing up for an official launch in the near future. This shows the yearning Coinbase has to become the biggest cryptocurrency exchange on the planet.
The Crypto Market Today
While the deal will be completed in May, penning it now makes sense since the market seems to be recovering slightly. But on a broader scale, it is utterly uncertain as to which direction it could take.
The market has been struggling with around $2 trillion since the first week of January, with the level flipping the trend right as it is about to be breached.
One attempt at the beginning of this month failed again, and now, as the crypto market nears $2 trillion once again, the odds are looking in its favor.
The last time $2 trillion was breached, the market was already pretty much overbought and ended up overheating.
Since the cooldown, though, the rally seems to be more sustainable since, at the moment, the market is building up to be bullish once again without being overbought.
Thus, the acquisition could prove to be profitable if it finishes around the time when the market is bullish as well.