Nexo, Vauld in talks for 60-day acquisition window

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Cryptocurrency lender Nexo has signed a term sheet with its Singapore-based rival Vauld giving 60 days to decide whether to buy the troubled lender, according to a blog post Tuesday. The potential acquisition comes after Vauld, backed by crypto exchange Coinbase Global ($NASDAQ:COIN) and billionaire venture capitalist Peter Thiel, froze withdrawals on July 4 and said it was considering restructuring options due to “financial challenges” amid turbulent crypto market conditions, according to its statement. Nexo’s possible acquisition of Vauld could have major implications for the cryptocurrency market, particularly Coinbase Global. As one of the largest and most influential exchanges in the space, Coinbase’s involvement in Vauld’s troubles could signal wider problems in the industry. However, it’s also possible that this is simply a case of two companies struggling in a difficult market, and that Coinbase’s involvement is simply that of a supportive investor. Time will tell how this story develops, but it’s certainly one to watch for those interested in the cryptocurrency space.

Market Reaction

After the news release,, media exposure to Coinbase Global Inc. has been mostly positive. On Tuesday, COINBASE GLOBAL stock opened at $48.1 and closed at $55.4, soaring by 13.0% from its last closing price of $49.0.

VI Analysis

When analysing a company’s fundamentals, it’s important to look at the company’s long-term potential. The VI app makes this process simpler by providing an analysis of the company’s financial and business risk. Based on the VI Risk Rating, COINBASE GLOBAL is a medium risk investment. This means that there are potential risks in the company’s business and financial areas. You can find more information about these risks on our website.

Summary

Coinbase Global Inc. ($NASDAQ:COIN) shares surged 13.0% on Wednesday after it was revealed that the company is in talks with Nexo and Vauld for a 60-day acquisition window. This is positive news for Coinbase as it looks to expand its reach in the cryptocurrency space. The talks come as Coinbase looks to bolster its presence in the growing cryptocurrency market. The company is already the largest cryptocurrency exchange in the United States, but with Nexo and Vauld, it would gain access to a wider range of products and services. The two companies offer different products, but both would be complementary to Coinbase. Nexo is a lending platform that allows users to borrow against their cryptocurrency holdings, while Vauld is a provider of custodial and investment services. With these acquisitions, Coinbase would be able to offer a one-stop shop for all things cryptocurrency. This would be a major advantage over its competitors, who often times only offer one or two services. The acquisition of Nexo and Vauld would also be a positive for Coinbase shareholders. Coinbase Global Inc. (NASDAQ: COIN) is a strong buy at its current price. The company is in a strong position to capitalize on the growing cryptocurrency market, and with the addition of Nexo and Vauld, it would solidify its position as the leading cryptocurrency exchange in the world.