Coinbase Ends $2B BVNK Acquisition, Stablecoin Plans Hit
Coinbase has mutually ended its planned $2 billion acquisition of UK stablecoin provider BVNK after due diligence found limited product synergies. The cancellation halts its strategy to bolster stablecoin rails, a sector that contributed nearly 20% of its Q3 revenue and supports its USDC issuance. This follows Coinbase’s $2.9 billion Deribit buyout and comes amid US legislative moves like the GENIUS Act to expand stablecoin use. COIN shares fell over 4% as traders reassess its growth outlook in cross-border payments, corporate treasury and merchant services.
Bearish
The cancellation of the $2 billion BVNK deal removed a key pillar of Coinbase’s stablecoin infrastructure expansion, triggering a swift 4%+ share drop as investors recalibrate growth expectations. In the short term, sentiment is negative given the lost revenue diversification and market positioning. Over the long term, Coinbase’s strong USDC issuance and M&A track record may stabilize its outlook, but the setback highlights execution risks in its stablecoin strategy.