Coinbase CEO Brian Armstrong is on the hunt for more mergers and acquisitions after scooping up crypto derivatives platform Deribit for $2.9 billion. “We are always looking at M&A opportunities,” Armstrong told Bloomberg on May 14, flexing Coinbase’s hefty $9.9 billion cash stash as fuel for future deals.
Armstrong emphasized Coinbase’s advantage as a public company with “liquid currency” to swing at the right pitches, but no wild swings here. “We want it to be the right opportunity,” he said.
The May 8 acquisition of Deribit, which involved $700 million in cash plus 11 million Coinbase shares, marks the biggest deal in crypto so far. It opens Coinbase’s doors to the lucrative crypto derivatives market and boosts the platform’s global growth ambitions.
Stock Soars as Coinbase Joins the Big League
Armstrong is especially keen on international partners who “think similar” and can fast-track Coinbase’s product lineup and expansion. Asked about snapping up stablecoin issuer and Coinbase partner Circle, Armstrong played it cool with no news yet, despite Ripple’s recent $5 billion (rejected) bid.
Meanwhile, Coinbase’s stock is flying high. On May 19, Coinbase will become the first crypto company to join the prestigious S&P 500, exposing it to a wider pool of investors. Shares climbed 2.5% to $263 after hours and have surged over 30% since early May, riding high on the wave of recent announcements, up nearly 50% in a month.
HODL Team
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