Coinbase Snaps Institutional Digital Asset Manager One River For Undisclosed Terms

  • Coinbase Global, Inc COIN acquired One River Digital Asset Management (ORDAM), a premier institutional digital asset manager and SEC-registered investment adviser. 
  • The financial terms of the transaction remained undisclosed.
  • "This is about wanting to bring more institutional capital into the world of crypto," Greg Tusar, Coinbase's head of institutional product, Bloomberg reports citing an interview. "We expect to build — on the other side of this crypto winter — an awesome asset-management business."
  • ORDAM will transition to become Coinbase Asset Management (CBAM) and will operate as an independent business and wholly-owned subsidiary of Coinbase. 
  • The acquisition aligns with Coinbase's long-term strategy to unlock further opportunities for institutions to participate in the crypto economy.
  • Eric Peters will continue to serve as the CEO/CIO of ORDAM (now CBAM) and the CEO/CIO of One River Asset Management.
  • Alan Howard, the co-founder of Brevan Howard Asset Management, was an early backer. A financing round in 2021 added Coinbase, Goldman Sachs Group, Inc GS, and Liberty Mutual Group Inc as investors. That deal valued One River Digital at $186 million.
  • In February, Coinbase reported fourth-quarter revenue of $629.1 million, which came in ahead of a Street estimate of $586.2 million.
  • Coinbase reported a loss of $2.46 per share in the fourth quarter, which missed a Street estimate of a loss of $2.39 per share.
  • Coinbase held $5.5 billion in cash and equivalents as of December 31.
  • Price Action: COIN shares traded lower by 0.27% at $63.48 on the last check Friday.
  • Photo via Wikimedia Commons

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