Coinbase CEO Brian Armstrong has indicated that the company is actively seeking additional merger and acquisition opportunities following its recent $2.9 billion acquisition of crypto derivatives platform Deribit. In a May 14 interview with Bloomberg Television, Armstrong emphasized the firm’s robust financial position, highlighting a strengthened balance sheet with $9.9 billion in U.S. dollar resources at the end of the first quarter.
“We are always looking at M&A opportunities,” Armstrong stated, noting that being a public company provides Coinbase with a liquid currency to facilitate such deals. He added, “We are looking at acquisition opportunities; doesn’t mean we swing at every pitch. We want it to be the right opportunity.”
The Deribit acquisition, announced on May 8, is the largest in the crypto industry to date and includes $700 million in cash and 11 million shares of Coinbase stock. This move allows Coinbase to expand into the profitable crypto derivatives market and continue scaling its global growth.
Armstrong mentioned a particular interest in international opportunities and companies that align with Coinbase’s vision, aiming to accelerate product development and growth. However, when asked about a potential acquisition of stablecoin issuer and Coinbase partner Circle, which has filed to go public, Armstrong stated that there was nothing to announce at this time.
Coinbase’s stock (COIN) has responded positively to these developments, closing up 2.5% at $263 in after-hours trading on May 14. The stock has surged more than 30% since the start of May and is up nearly 50% over the past month. Additionally, Coinbase is set to become the first crypto firm to join the S&P 500 index on May 19, potentially broadening its investor base and exposure to passive funds tracking the benchmark.
