Coinbase has the conditions to become an acquisition target. If it merges with a traditional exchange, it may dominate the crypto market.

Odaily News Trump's announcement on Sunday that Bitcoin, Ethereum, XRP, Solana and Cardano would be included in the U.S. strategic reserve of cryptocurrencies put the spotlight on Coinbase and the nation's major stock exchanges. The market sees Coinbase as a takeover target, with its management team building a strong business and partnering with a top exchange to not only enhance its industry position but also bring more strategic opportunities. Coinbase's stock price has fluctuated wildly, with the market seemingly viewing Trump as the arbiter of its fate. The stock surged about 100% after Trump's reelection, then fell back about 40% due to a lack of policy clarity. Over the past year, Coinbase's stock price has ranged from $146.12 to $349.75. Currently, Coinbase's price-to-earnings ratio is about 22 times, with a total market value of about $52 billion, and the large U.S. exchanges have the ability to make the deal to acquire Coinbase a reality. If large investors push a top exchange to acquire Coinbase, the new company will be able to maximize its return on investment as cryptocurrencies move from the financial frontier to the mainstream. (Barrons)