Nearly a month after it was hacked for $44.2 million, India’s CoinDCX is in “advanced discussions” for acquisition by Coinbase, one of the world’s largest cryptocurrency exchanges. According to a report by Mint citing unnamed sources familiar with the matter, the deal would involve Coinbase, which already holds a stake in the platform, completing the purchase at a valuation likely below $1 billion.
Described as a “long-term strategic bet,” the acquisition aims to position Coinbase in India’s growing crypto market at a “discounted valuation,” essentially a “low-cost gamble” anticipating market maturation, according to the Mint report.
A Coinbase spokesperson confirmed awareness of the reports but did not comment on specifics, stating the company “don’t comment on rumors or speculation.” The spokesperson added that Coinbase has a broader mission “to increase economic freedom in the world, and are constantly exploring opportunities around the world to build, buy, partner and invest to accelerate our roadmap.”
Acquisition Valuation and Context
The proposed valuation marks a significant drop from CoinDCX’s previous $2.2 billion valuation assessment in April 2022.
CoinDCX’s Security Post-Hack
CoinDCX managed to contain the hack effectively, assuring customers their funds remained untouched. The attack occurred on July 18, draining an operational wallet valued at $44.2 million shortly after it was breached.
Potential Other Investment Target
In addition to the CoinDCX deal, Mint reports Coinbase is considering combining its stakes in CoinDCX and another major Indian competitor, CoinSwitch. However, the report notes these discussions are less advanced and no formal talks with CoinSwitch are currently underway.
Geographic Expansion Focus
The potential acquisition aligns with Coinbase’s strategy, previously demonstrated by registering with India’s Financial Intelligence Unit earlier this year, which may signal a commitment to developing its operations within the country.
Recent Acquisition History
Not coincidentally, Coinbase has recently engaged heavily in acquisitions globally. Last month saw a $2.9 billion acquisition of Deribit, aiming to solidify its position in the crypto derivatives trading sphere. This month brought another acquisition, of token-management platform Liquifi, targeted at supporting early-stage Web3 developers.
