Odaily News Coinbase is ripe for acquisition, and if it were to merge with a traditional exchange, it would create a company with both expertise and industry influence to dominate the currently fragmented cryptocurrency market.
Coinbase currently has a price-to-earnings ratio of about 22 times and a total market value of about $52 billion, but large U.S. exchanges have the ability to make this deal happen. The Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, has a market value of $100 billion and a price-to-earnings ratio of 36 times. Its CEO Jeffrey Sprecher's wife Kelly Loeffler is a member of the Trump administration cabinet.
The global futures trading giant CME Group has a market value of $93 billion and a price-to-earnings ratio of 26. The Nasdaq exchange, known for its technological strength and global network, has a market value of $47 billion and a price-to-earnings ratio of 41. If Coinbase can cooperate with major US exchanges, it will be able to open the door to power and markets, which may still be out of reach for it.
Large investors may push a top exchange to acquire Coinbase, and the new company will be able to maximize investment returns as cryptocurrencies gradually move from the financial frontier to the mainstream. (Barrons)