Coinbase mulled buying FTX Europe post-bankruptcy: report

Bankruptcy • September 22, 2023, 5:03PM EDT
Published 1 minute earlier on
The Block

Quick Take

  • Coinbase considered acquiring FTX Europe following the exchange’s November 2022 bankruptcy, according to Fortune, which cites documents the publication viewed.

In the aftermath of FTX's bankruptcy in November of last year, rival U.S.-based exchange Coinbase considered acquiring the failed company's European unit, according to Fortune.

Documents show that Coinbase mulled buying FTX Europe as it explored expanding its crypto derivatives offerings, said the report. Talks never advanced to a "late stage," the report also said.

While Coinbase is "no longer pursuing the potential deal," the U.S.-based exchange continued to express interest in an acquisition sometime during this month, said Fortune.

Crypto derivatives

Crypto derivatives make up a significant portion of the overall trading of digital currencies. JMP analysts have said that Coinbase's expanding into derivatives adds to its upside case in the long term, given the derivatives market represents the bulk of trading activity.

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Previous to the company's bankruptcy, FTX Europe had been adding tens of thousands of users, according to Fortune.


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About Author

RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.

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