Coinbase Acquires Crypto-Derivatives Trading Platform FairX

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Cryptocurrency exchange platform Coinbase Global (COIN) revealed that it has acquired FairX, a U.S.-based derivatives platform. Shares of the company rallied 3% in Wednesday’s extended trading session.

FairX is registered with the U.S. Commodity Futures Trading Commission (CFTC) as a designated contract market. It has been dealing with several brokerage firms such as TD Ameritrade, Wedbush, Virtu Financial and more.

With this deal, Coinbase will be able to provide customers with a well-regulated crypto derivatives trading platform. The financial details of the transaction, which is expected to close in the first fiscal quarter, remain undisclosed so far.

Initially, the company will be bringing crypto derivatives to market through FairX’s existing partner ecosystem and gradually it seeks to leverage the infrastructure to offer services to all Coinbase customers in the U.S.

Stock Rating

Recently, Bank of America Securities analyst Jason Kupferberg upgraded the rating on Coinbase to Buy from Hold with a price target of $340 (44.9% upside potential).

Kupferberg said, “The main fundamental reason for the rating change is… increasing signs of revenue diversification beyond retail crypto trading, a trend we think could accelerate in 2022 and beyond.”

The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 13 Buys, 1 Hold and 2 Sells. The average Coinbase price target of $402.33 implies 71.4% upside potential.

Website Traffic

TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Coinbase’s performance.

According to the tool, the Coinbase website recorded a 46.2% monthly increase in global visits in December, compared to the previous year. Likewise, year-to-date, the website traffic has grown 189.2% against the same period last year. Such impressive growth numbers make one of the Top Trending Websites.

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