Coinbase Eyes More Deals After Deribit Buy

Coinbase Eyes Further Acquisitions Following $2.9 Billion Deribit Deal

Coinbase CEO Brian Armstrong has confirmed that the company remains open to future merger and acquisition (M&A) opportunities following its landmark $2.9 billion acquisition of crypto derivatives platform Deribit.

Speaking during a Bloomberg Television interview on May 14, Armstrong emphasized that M&A remains a strategic focus for Coinbase. “We are always looking at M&A opportunities,” he said, highlighting the strength of the company’s financial position as a catalyst for future deals.

Coinbase’s Q1 earnings report revealed a robust financial standing, with the firm ending the quarter holding $9.9 billion in U.S. dollar-denominated resources. Armstrong noted that being a publicly traded company provides Coinbase with a “liquid currency” to execute acquisitions efficiently. “We’re looking at acquisition opportunities. It doesn’t mean we swing at every pitch — we want to make sure it’s the right opportunity,” he added.

The recent $2.9 billion acquisition of Deribit, announced on May 8, marks Coinbase’s most significant deal to date. The transaction includes $700 million in cash and 11 million shares of Coinbase stock. This move positions Coinbase to expand its footprint in the highly profitable crypto derivatives sector, reinforcing its mission to scale globally and diversify its product offerings.

Armstrong pointed out that international markets are a major area of interest, stating the company is particularly focused on acquiring firms that share Coinbase’s vision and can accelerate its growth trajectory. “We’re especially looking at companies that think similarly and can help drive product innovation and expansion,” he said.

When asked about the possibility of acquiring Circle, a stablecoin issuer and existing Coinbase partner that has filed to go public, Armstrong clarified that there are currently no announcements related to such a deal. This comes amid speculation following reports that fintech company Ripple had made a failed bid of up to $5 billion to acquire Circle, according to Bloomberg.

In parallel with its M&A strategy, Coinbase is also experiencing a surge in its stock performance. The company is set to become the first crypto-native firm to be listed on the S&P 500 index, effective May 19. This milestone underscores Coinbase’s growing influence within the broader financial ecosystem.

The S&P 500 index tracks the performance of 500 of the largest publicly traded U.S. companies, and Coinbase’s inclusion opens up its shares to a wider investor base, including passive investment funds that benchmark against the index.

Following the Deribit acquisition announcement and the S&P 500 inclusion news, Coinbase stock (COIN) climbed 2.5% to close at $263 in after-hours trading, according to Google Finance. Since the beginning of May, COIN has risen over 30% and is up nearly 50% over the past month, reflecting strong investor confidence.