Fortune Magazine: Coinbase reportedly sought to acquire FTX Europe! The previous inquiry was in early September.

After the bankruptcy of FTX, its four subsidiaries including FTX Europe were approved for sale earlier this year. Recently, there have been rumors that Coinbase was interested in acquiring FTX Europe. However, it is still uncertain whether the sale plan is still ongoing and whether it will be acquired by Coinbase.

Coinbase Considered Acquiring FTX Europe

According to a report by Fortune, Coinbase had considered acquiring FTX Europe, the European subsidiary of FTX, in order to expand its presence in the global derivatives market following FTX's bankruptcy in November last year.

Prior to the bankruptcy of FTX, FTX Europe held a crucial Cypriot regulatory license, making it the only company able to offer perpetual contracts to the European market in the realm of cryptocurrency derivatives.

With this niche market, FTX Europe was attracting tens of thousands of users monthly, making it an attractive acquisition target for other companies post-FTX incident. Given that the trading volume of derivatives has always been several times that of spot markets, acquiring FTX Europe could significantly boost company revenue.

Fortune reported that in November 2022 after FTX's bankruptcy and early September this year, senior executives at Coinbase had inquired about the possibility of acquisition, although sources revealed that the deal is no longer being pursued at present.

Possibility of Sale for FTX Europe

FTX Europe, formerly known as Digital Assets AG DAAG, a cryptocurrency derivatives company established in 2020, was acquired by FTX for $376 million and rebranded as FTX Europe.

According to previous reports, following FTX's bankruptcy, the U.S. bankruptcy court in mid-January this year allowed the management team to sell four subsidiary companies, including FTX Europe.

Fortune mentioned that in a statement shared by an FTX spokesperson in July, professional advisors of FTX believed there was no realistic possibility of a sale. However, FTX continues to entertain acquisition offers from other companies, with the proposed sale deadline set for 9/24, indicating that the acquisition of FTX Europe is not entirely off the table.

Furthermore, an FTX spokesperson confirmed the current situation to Fortune on Thursday, stating, "FTX creditors are continuing to evaluate whether there are viable options to sell part or all of the assets of FTX's European business, and this process is ongoing."