Coinbase CEO Brian Armstrong says the crypto exchange giant is actively exploring more mergers and acquisitions after its recent $2.9 billion acquisition of crypto derivatives platform Deribit.
Speaking on Bloomberg Television on May 14, Armstrong highlighted the company’s financial strength, noting that Coinbase ended Q1 with $9.9 billion in U.S. dollar resources, according to Coinbase’s latest revenue report.
“We are always looking at M&A opportunities,” he said. “Part of the benefit of being a public company is having a liquid currency to do that.”
According to a May 8 announcement, the Deribit deal, which includes $700 million in cash and 11 million shares of Coinbase stock, marks the largest crypto industry acquisition to date. The move positions Coinbase to accelerate its global expansion and tap deeper into the lucrative crypto derivatives market.
Armstrong emphasized that Coinbase particularly targets international firms with aligned visions that can help fast-track product innovation and market reach. However, when asked about a potential acquisition of Circle—the stablecoin issuer and Coinbase partner—Armstrong said there were no updates to share.
Bloomberg reported that Ripple made a $5 billion bid for Circle in late April, but the offer was turned down.
Coinbase’s appetite for growth comes at a time of bullish momentum for the company. Its stock (COIN) surged 2.5% to $263 in after-hours trading, riding on investor excitement from recent announcements. The stock has climbed over 30% since the beginning of May and has been up nearly 50% over the past month, according to Google Finance data.
Adding to its upward trajectory, Coinbase is set to become the first crypto firm to be included in the S&P 500 index on May 19. Entry into the index, which tracks 500 of the largest publicly traded companies in the U.S., could attract significant inflows from passive investment funds and broaden investor exposure to the company.
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