Coinbase Global has recently agreed to acquire Echo, an exclusive blockchain investment platform, for $375 million, strengthening its position in the crypto investment space. According to the Wall Street Journal, the acquisition will be settled in cash and stocks. Jordan Fish, also known as Cobie, the founder of Echo, confirmed this news via a social media post. Fish stated that Echo would remain an independent brand for a while, but its public token sales product, Sonar, would be integrated into the Coinbase ecosystem.
Echo Brand Retained, Sonar Merges into Coinbase
Cobie commented that Echo would maintain its existing brand identity. However, the product Sonar, designed for public token sales, would find a new home under the Coinbase umbrella. This integration signifies that Coinbase will be able to deploy advanced investment tools for both private and institutional users.
Following the acquisition announcement, Coinbase’s shares rose by 2.31% during pre-opening trading, reaching $343.78. Consequently, the company’s stock has gained a remarkable 33% since the beginning of the year, while the market capitalization increased to $88.3 billion. Analysts suggest that this acquisition will reinforce Coinbase’s technological and operational dominance in the global investment market.
Coinbase’s Eighth Purchase of the Year
The addition of Echo marks Coinbase’s eighth acquisition this year. Previously, Coinbase expanded its portfolio by integrating platforms such as Deribit and LiquiFi. Most recently, the company revitalized a popular crypto podcast, UpOnly, through the purchase of NFTs valued at $25 million. This series of acquisitions underscores Coinbase’s ambition not just to provide exchange services but to establish a comprehensive digital financial ecosystem covering investments, media, and infrastructure.
Acquiring Echo is considered a strategic move, particularly focusing on blockchain-based private investment markets. The platform allows investors direct access to private equity investments on the blockchain. Coinbase management stated that further details of the deal would be released to the public within the day.
