Coinbase Eyes More Acquisitions Following $2.9B Deribit Deal

In an interview on Bloomberg Television on May 14th, Armstrong stated:

“We are always looking at M&A opportunities and Coinbase is well-positioned financially to pursue more deals. I want to emphasize that the company’s substantial balance sheet is a strategic asset in identifying and executing high-impact acquisitions.”

He then added:

“Part of the benefit of being a public company is, you have a liquid currency to do that. We are looking at acquisition opportunities; doesn’t mean we swing at every pitch. We want it to be the right opportunity.”

 

Coinbase’s Financial Strength Enables Strategic Expansion

Coinbase reported strong financials in its Q1 2025 earnings report, highlighting $9.9 billion in U.S. dollar resources. This financial cushion gives the firm the flexibility to scale through acquisitions without putting pressure on its core operations.

The company’s most recent acquisition, crypto options exchange Deribit, marks a significant milestone for both Coinbase and the broader digital asset industry. The $2.9 billion transaction, announced on May 8, includes $700 million in cash and 11 million shares of Coinbase stock.

Source: X (@coinbase)

Deribit is a major player in the crypto derivatives market, particularly in options trading, and the acquisition is expected to help Coinbase tap into this fast-growing and profitable sector.

According to Armstrong, the acquisition is also part of Coinbase’s strategy to scale globally. He noted that Coinbase is particularly interested in acquiring international companies that align with its mission and can accelerate product development.

Coinbase’s Growing Footprint In Crypto Derivatives

The Deribit acquisition is the biggest acquisition in the history of the cryptocurrency industry to date. It signals a major push by Coinbase into derivatives trading, which has seen explosive growth over the past few years and currently represents a significant portion of global crypto trading volume.

With Deribit under its umbrella, Coinbase can now offer a wider range of financial products to institutional and retail investors alike, while diversifying its revenue streams beyond spot trading.

Potential Circle Acquisition

Despite growing speculation, Armstrong clarified that there are currently no plans to acquire Circle, the issuer of the USDC stablecoin and a long-time Coinbase partner. When asked directly during the Bloomberg interview, he replied that there was nothing to announce.

Circle, which has filed to go public, has attracted acquisition interest from other major players in the crypto space. In April, Ripple reportedly made a bid worth up to $5 billion to acquire Circle, though the offer was turned down, according to Bloomberg sources.

Coinbase To Join S&P 500

In another major milestone, the crypto exchange is set to become the first crypto-native company to join the prestigious S&P 500 index on May 19th. The S&P 500 tracks 500 of the largest publicly traded companies in the United States and serves as a benchmark for institutional investors and index funds.

Inclusion in the index could significantly boost Coinbase’s visibility among mainstream investors and result in increased demand for its stock from funds that track the S&P 500.

Source: Google Finance

Following the dual announcements, the Deribit acquisition and S&P 500 inclusion, Coinbase’s stock (NASDAQ: COIN) surged. Shares closed up 2.5% in after-hours trading on May 14th, reaching $263, according to Google Finance.

COIN has climbed more than 30% since the start of May and is up nearly 50% over the past month, signaling strong investor confidence in Coinbase’s growth strategy.

A Dominant Future

With a war chest nearing $10 billion and a growing global footprint, Coinbase appears to be entering an aggressive expansion phase.

The acquisition of Deribit places the company squarely in the middle of the booming derivatives market, while the potential for future deals, particularly in international markets, suggests the exchange has no plans of slowing down.