The decision was made after weeks of due diligence and ended what could have greatly boosted Coinbase’s institutional stablecoin business, which already contributes nearly a fifth of its total revenue. Meanwhile, video platform Rumble is moving forward with a $767 million acquisition of AI firm Northern Data, deepening its partnership with stablecoin issuer Tether. Backed by Tether’s $775 million investment, Rumble’s deal now forms part of the growing convergence between crypto, artificial intelligence, and digital infrastructure as firms look to broaden their influence beyond traditional finance.
Coinbase and BVNK Call Off $2B Deal
Coinbase and stablecoin infrastructure startup BVNK reportedly decided to end negotiations over a $2 billion acquisition that would have ranked among the largest deals in crypto history. The decision was described as mutual, and comes after weeks of due diligence and an exclusivity agreement that was signed in October. This is according to a Fortune report published Tuesday. Both companies confirmed the talks but did not elaborate on why the deal was abandoned.
“After discussing a potential acquisition of BVNK, both parties mutually agreed to not move forward,” a Coinbase spokesperson told Fortune, and added that the exchange is still open to other opportunities. The proposed deal would have greatly expanded Coinbase’s institutional stablecoin offering. Stablecoin revenue already accounts for 19% of Coinbase’s total income, generating $246 million out of its $1.9 billion in third-quarter revenue.
Had it gone through, the BVNK acquisition would have been Coinbase’s second-largest purchase, after its $2.9 billion takeover of crypto derivatives exchange Deribit earlier this year. The move would have also positioned Coinbase at the forefront of the quickly growing stablecoin ecosystem, which is now worth around $312 billion.
The decision to walk away, however, could free up some capital for the company to explore other opportunities in the same space, especially as institutional and retail demand for stablecoins is on the rise.
The timing of the failed deal is interesting, as Wall Street and major financial networks like Western Union, MoneyGram, and SWIFT have begun incorporating stablecoin technology into their operations. Regulatory momentum has also been building, particularly after the United States passed the GENIUS Act in July, which formalized a federal framework for stablecoins. The US Treasury even projected that the stablecoin market could reach $2 trillion by 2028.
For BVNK, the end of talks with Coinbase is another pivot point in its short but fast-growing history. The UK-based fintech was launched in 2021, and was also in discussions with Mastercard in October about a potential acquisition. Backed by investors including Citi Ventures and Visa, BVNK processes over $20 billion in annualized transaction volume.
Rumble Expands Into AI
Other acquisitions in the industry are going a bit more smoothly. Video-sharing platform Rumble recently announced a business combination agreement to acquire AI infrastructure firm Northern Data, which is yet another major crossover between the cryptocurrency and artificial intelligence sectors. The deal follows Rumble’s growing financial relationship with stablecoin issuer Tether, which has become a major backer of the platform.
Announcement from Rumble
According to Reuters, the acquisition is valued at approximately $767 million and will be structured as a stock transaction between Rumble and Northern Data. The move builds on a joint venture that was announced in August between Rumble and Tether to purchase the AI company. Tether previously invested $775 million into Rumble in December of 2024, and CEO Paolo Ardoino described the platform as aligned with Tether’s “fundamental values of freedom of speech and financial freedom.”
During Rumble’s third-quarter investor call, Ardoino confirmed that Tether entered into a $150 million GPU service purchasing agreement and a $100 million advertising deal linked to the Northern Data acquisition. “Our investment in Rumble is about building infrastructure that protects freedoms,” Ardoino said, and explained that both companies share a vision of developing open, censorship-resistant platforms as an alternative to centralized technology giants.
Rumble CEO Chris Pavlovski has long had ambitions to challenge YouTube’s dominance, and the company’s deepening ties with Tether and Northern Data could accelerate those efforts by integrating AI-driven infrastructure into its content delivery systems. Investors also seem excited about these prospects as shares of Rumble’s RUM stock rose 7.6% over the past week.
The acquisition is the latest in a string of moves by crypto companies expanding into the AI space. Earlier this year, blockchain analytics firm Chainalysis acquired AI fraud detection startup Alterya for $150 million to improve its fraud prevention capabilities. Bitcoin mining firm MARA Holdings also entered the sector in August by purchasing a 64% stake in French AI and cloud infrastructure provider Exaion for $168 million.
