With a solid balance sheet and a historic acquisition under its belt, Coinbase is actively exploring new merger and acquisition (M&A) opportunities, CEO Brian Armstrong confirmed this week.
Deribit Buy Signals Aggressive Expansion Strategy
On May 14, Coinbase CEO Brian Armstrong told Bloomberg Television that the company is on the lookout for more M&A prospects following its $2.9 billion acquisition of Deribit, a leading crypto options trading platform.
“We are always looking at M&A opportunities,” Armstrong said, emphasizing Coinbase’s strong financial position. “Part of the benefit of being a public company is, you have a liquid currency to do that.”
According to its latest earnings report, Coinbase finished Q1 with $9.9 billion in U.S. dollar resources. This financial strength enables the company to target strategic deals that align with its long-term growth goals.
The Deribit acquisition, announced on May 8, is the largest in the crypto industry to date. The deal includes $700 million in cash and 11 million Coinbase shares. By acquiring Deribit, Coinbase is diving deeper into the lucrative crypto derivatives market and bolstering its global expansion plans.
Focused on Global Growth and Strategic Synergy
Armstrong highlighted that future deals would prioritize international firms that share Coinbase’s vision and can accelerate its product innovation. “We want it to be the right opportunity,” he noted. “Doesn’t mean we swing at every pitch.”
While rumors swirled around a possible acquisition of stablecoin issuer Circle—already a Coinbase partner—Armstrong dismissed the speculation, stating there’s “nothing to announce at this time.”
In contrast, Ripple recently made headlines with a rejected bid of up to $5 billion for Circle, according to Bloomberg.
Coinbase Soars Ahead of S&P 500 Inclusion
Coinbase stock (COIN) has been on a tear. The company is set to join the S&P 500 index on May 19, becoming the first crypto-native firm to enter the elite club of America’s top 500 publicly traded companies.
This milestone opens the door for broader institutional exposure and inclusion in major index-tracking funds.
COIN closed at $263 in after-hours trading on May 14, up 2.5% for the day. The stock has surged over 30% since the start of May and nearly 50% in the past month—driven by the Deribit deal and S&P 500 announcement.
