Shares fell on Thursday after crypto trading platform FX announced that it would be trading stocks.
The acquisition of FairX, already registered with the Commodity Future Trading Commission, fills a gap in the Coinbase product line.
In a statement on its blog, Coinbase said the acquisition will enable it to market first through its existing partner FairX ecosystem and then expand to all US Coinbase customers.
“We want to make Coinbase more accessible to millions of our retail customers by providing an easy-to-use user experience,” the company said.
Trade volume of crypto products Reached $ 2.9 trillion in December, surpassing space trading, according to CryptoCompare. Coinbase is the second largest trading platform behind cryptocurrencies behind Binance with $ 3.8 billion in 24-hour trading volume. CoinMarketCap, MarketWatch reports.
Analysts at Needham said on Thursday that acquiring Coinbase FairX was “an important step in increasing transaction revenue and getting one stop shop for crypto financial services.”
Needham evaluates Coinbase shares with a $ 420 target price.
Chris Brendler, senior research analyst at DA Davidson, says the acquisition will help Coinbase fight to maintain high interest rates.
“In the last quarter, the price of pick-up has decreased as more transactions have moved to lower-paying areas,” Brandler said in an email. Baron. “The partner market offers some of the highest paying services to help offset this change.”
Terms of purchase not specified. Coinbase says purchases will close in the first quarter of the budget year.
Coinbase fell 1.7% to $ 230.75. At the beginning of Thursday session, the stock was trading higher.
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