Popular cryptocurrency startup Coinbase has acquired a U.S based startup Earn.com that uses blockchain for email paid services. The deal is reportedly worth more than $120 million.
A previous Coinbase report hinted that the exchange and some other potential buyers were in talks to buy one of the best-funded startup in the blockchain industry, Earn.com. On Monday, they released a statement confirming the news.
— Bitcoin Magazine (@BitcoinMagazine) April 16, 2018
Earn.com which was formerly known as 21 Inc. initially ran a Bitcoin mining operation that was powered by technology from Intel. Later in 2015 Earn.com launched its developer-focused 21 Bitcoin Computer. The startup was well-funded by some of the major Silicon Valley investors and as a result raised $116 million over multiple funding rounds.
In October last year, the startup changed its name from 21 Inc. to Earn.com and launched a service that rewards users in cryptocurrency on completing tasks and answering emails.
Coinbase has not yet disclosed any financial details of the deal however, sources directly involved in the discussions have suggested that the deal might close at more than $120 million.
According to a Recode report, the Coinbase-Earn.com deal was “slightly more than $100 million” and some of Earn.com stake holders initially opposed the acquisition deal.
Moreover, Coinbase has appointed Earn.com co-founder and CEO Balaji Srinivasan as its Chief Technology Officer while the rest of the team will also integrate with the Coinbase team.
CB said in a statement:
“Earn has built a paid email product that is arguably one of the earliest practical blockchain applications to achieve meaningful traction. We will keep Earn’s business running because it’s showing a lot of promise and potential.”
Coinbase had always tried to fill its ranks with talented men and this time the post of CTO has been occupied by one of the well-known names of Silicon Valley, Srinivasan, a man of exceptional talent. Srinivasan will now be a part of Coinbase’s development and will also be overseeing the recruitment of new crypto talent.
This is Coinbase’s fifth acquisition to date and it comes just a week after the startup announced the acquisition deal to buy Cipher Browser, a mobile Ethereum wallet startup.