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Crypto Giants Navigate Shifting Tides: Coinbase Halts Talks, Circle Soars, Gemini Stumbles, and Rumble Acquires Northern Data

Crypto Giants Navigate Shifting Tides: Coinbase Halts Talks, Circle Soars, Gemini Stumbles, and Rumble Acquires Northern Data

The cryptocurrency landscape is buzzing with significant corporate developments. Coinbase has reportedly ended acquisition talks for stablecoin startup BVNK, while Circle Internet has announced a substantial increase in its third-quarter profits. Meanwhile, Gemini faces a stock slump after missing earnings expectations, and Rumble is set to acquire Northern Data, bolstered by a significant commitment from Tether.

Key Takeaways

  • Coinbase abandons potential multi-billion dollar acquisition of BVNK.
  • Circle's Q3 profit triples, exceeding analyst expectations.
  • Gemini's stock falls sharply following a disappointing earnings report.
  • Rumble's acquisition of Northern Data progresses with Tether's strategic investment and ad commitment.

Coinbase Ends BVNK Acquisition Talks

Coinbase, a major player in the digital asset exchange market, has reportedly ceased acquisition discussions with the U.K.-based stablecoin firm BVNK. The potential deal, which was rumored to be valued between $1.5 and $2.5 billion, would have significantly bolstered Coinbase's presence in cross-border payments and merchant services. A Coinbase spokesperson confirmed the talks have concluded, though specific reasons were not disclosed. This move comes despite Coinbase's existing partnership with Circle for the USDC stablecoin.

Circle Internet Reports Strong Q3 Performance

Circle Internet, the issuer of the USDC stablecoin, has reported a robust third quarter, with net income tripling to $214 million, or 64 cents per share. Total revenue and reserve income more than doubled to $740 million, significantly surpassing analyst expectations. Despite a slight dip in share price due to anticipated interest rate cuts, Circle's CEO Jeremy Allaire highlighted accelerating adoption of USDC and its platform. The company is also advancing its Arc layer-1 blockchain initiative, signaling continued innovation and expansion in the stablecoin sector.

Gemini Faces Post-IPO Challenges

Gemini, the cryptocurrency exchange founded by the Winklevoss twins, experienced a significant stock price drop following its first earnings report since going public. The company reported a net loss of $159.5 million, or $6.67 per share, which was double the expected loss. This was attributed to heavy spending on marketing and IPO-related costs. While revenue more than doubled year-over-year, driven by increased trading activity and new products like a crypto rewards credit card, the earnings miss overshadowed the growth, leading to an 8.67% pre-market share decline.

Rumble to Acquire Northern Data with Tether's Support

Rumble has announced a significant step forward in its planned acquisition of AI and high-performance computing firm Northern Data AG. The deal, valued at approximately $767 million, will see Northern Data investors receive Rumble shares, with Tether, a major shareholder in Northern Data, committing to accepting the offer. Tether will also purchase up to $150 million in GPU services from the combined entity and invest $100 million in a two-year advertising campaign for Rumble Wallet. This strategic partnership aims to enhance Rumble's cloud capacity, expand its European presence, and leverage Tether's infrastructure for decentralized AI development.

Sources