Cryptocurrency startup Coinbase has proclaimed the acquisition of Earn.com, one amongst the industry’s best-funded startups.
A statement free on Mon confirms a previous CoinDesk report within which sources aforesaid that Coinbase and different potential patrons were in talks to amass Earn.com, once called twenty one INC.
21 INC antecedently ran a bitcoin mining operation, battery-powered by technology from Intel, and later launched its eponymic, developer-focused twenty one Bitcoin pc in 2015. the corporate was backed by major Silicon Valley investors to the tune of $116 million raised over multiple funding rounds.
The firm rebranded to Earn.com last Oct in a very pivot that saw it launch a social network aimed toward incentivizing users to finish tasks in exchange for cryptocurrency rewards.
While Coinbase failed to in public disclose the terms of the deal, a supply directly concerned within the discussions told CoinDesk antecedently that the overall quantity in money, crypto-assets, stocks and earn-out being pursued at the time might exceed $120 million.
According to a brand new report from rearrange, the Coinbase deal “was slightly over $100 million. The publication conjointly rumored that a number of Earn’s existing investors at first balked at the provide.
As a part of the acquisition, Balaji Srinivasan, co-founder and CEO of Earn.com, can become Coinbase’s 1st chief technology officer. The Earn.com team are going to be integrated with Coinbase’s operations and its existing business can continue, Coinbase aforesaid.
The startup said:
“Earn has designed a paid email product that’s arguably one amongst the earliest sensible blockchain applications to realize purposeful traction. we’ll keep Earn’s business running as a result of it’s showing tons of promise and potential.”
In his new capability, Srinivasan can facilitate lead the event of the Coinbase platform, and conjointly recruit new cryptocurrency talent.
The news comes simply days when another acquisition deal, proclaimed last Friday, that saw Coinbase take mobile ethereum billfold Cipher Browser.
Coinbase is also on the verge of its biggest acquisition nevertheless.
According to sources near to the case, the port of entry startup, that has raised quite $225 million in venture funding, is in talks to buy Earn.com, that rebranded late last year from twenty one.co with the launch of its eponymic paid electronic messaging platform.
Sources with information of the talks gave completely different estimates of the value. one among those sources claimed Earn might be merchandising for $30 million. however another, United Nations agency is directly concerned within the discussions, aforementioned the full worth of money, cryptocurrency, stock and earn-out being mentioned would exceed the quite $120 million Earn has raised over multiple funding rounds since its introduction in 2013.
Still, Earn.com is alleged to be in talks with multiple parties a couple of potential acquisition, with one supply indicating that the suitors were all “household names” within the business.
While no deal has nevertheless been affected, the news follows the March announcement that Coinbase had employed Emilie Choi, the previous head of mergers and acquisition at LinkedIn, as its vice chairman of company and business development.
Earn.com business executive Balaji Srinivasan would probably be part of Coinbase beneath the terms of the deal.
Coinbase didn’t reply to requests for comment at press time.