Exchange Looks to Expand Globally as Crypto Derivatives, S&P 500 Inclusion Drive Growth
Coinbase CEO Brian Armstrong says the company is actively exploring additional mergers and acquisitions (M&A) following its $2.9 billion acquisition of crypto derivatives platform Deribit, the largest crypto acquisition to date.
“We are always looking at M&A opportunities,” Armstrong said during a May 14 interview with Bloomberg Television, noting that the company’s strong balance sheet gives it flexibility to pursue strategic deals.
Coinbase ended the first quarter with $9.9 billion in U.S. dollar resources, according to its latest earnings report.
“We want it to be the right opportunity,” Armstrong added. “We don’t swing at every pitch.”
Deribit Deal Expands Coinbase Into Derivatives
Coinbase announced the acquisition of Deribit on May 8, paying $700 million in cash and issuing 11 million shares of Coinbase stock to complete the $2.9 billion deal.
The move gives Coinbase a strong foothold in the high-margin crypto options and derivatives market, and positions the exchange for further global expansion.
Armstrong said Coinbase is especially focused on acquiring international companies with “a similar mindset” and the ability to accelerate product innovation.
Stablecoin Speculation: Circle Not in the Cards — Yet
When asked about a potential acquisition of Circle, the issuer of the USDC stablecoin and long-time Coinbase partner, Armstrong declined to comment:
“We’re always looking, but nothing to announce at this time.”
In late April, Ripple Labs reportedly made a $5 billion bid to acquire Circle, which was rejected, according to Bloomberg. Circle has since filed to go public, adding more complexity to any acquisition discussions.
Coinbase Set to Join S&P 500 Index
Coinbase will officially join the S&P 500 on May 19, becoming the first crypto-native company to enter the prestigious stock index.
Inclusion in the S&P 500, which tracks 500 of the largest publicly traded U.S. companies, could significantly boost institutional demand for Coinbase stock and attract passive investment flows from ETFs and index funds.
Coinbase stock (COIN) closed up 2.5% at $263 in after-hours trading on May 14, according to Google Finance. COIN has surged more than 30% in May and is up almost 50% over the past month, fueled by the Deribit acquisition and S&P 500 announcement.
Final Thoughts: Coinbase Enters New Era of Strategic Expansion
Coinbase’s Deribit acquisition signals a major strategic shift as the exchange leans into crypto derivatives — a sector that has historically dominated trading volumes on platforms like Binance and OKX.
With fresh momentum from its S&P 500 inclusion, a strong balance sheet, and growing global ambitions, Coinbase is positioning itself as crypto’s most established institutional gateway — and its next acquisition could be just around the corner.
