Why Shares of Coinbase Are Rising

Shares of Coinbase Global (NASDAQ: COIN) had climbed more than 6% as of 12:43 p.m. ET on news that the large cryptocurrency exchange is nearing a deal to buy Latin America's largest cryptocurrency brokerage, Mercado Bitcoin.

According to Bloomberg, the rumor first came from a local newspaper called O Estado de S.Paulo, which also did not specify how it obtained the information regarding the deal. Specifically, the deal is for Coinbase to buy a Brazilian holding company called 2TM, which controls Mercado Bitcoin. 2TM is a unicorn, meaning it has a valuation of more than $1 billion. Coinbase is expected to close on the deal in April, according to news reports.

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Source Fool.com