After Deribit, Coinbase Signals It’s Not Done Shopping

Coinbase is prepared to ramp up acquisitions following its $2.9 billion deal to acquire Deribit, CEO Brian Armstrong said in an interview with Bloomberg Television on Wednesday.

Deribit, a platform for Bitcoin and Ethereum options trading, marks Coinbase’s largest acquisition to date. The move signals the exchange’s broader ambitions to expand into crypto derivatives markets.

With a robust balance sheet, Coinbase is actively exploring M&A opportunities, though Armstrong emphasized the company is being selective. “Part of the benefit of being a public company is, you have a liquid currency to do that,” he said. “We are looking at acquisition opportunities, doesn’t mean we swing at every pitch. We want it to be the right opportunity.”

Armstrong added that the company is primarily focused on acquiring international firms aligned with Coinbase’s vision and capable of accelerating product development and growth.

When asked about the possibility of acquiring Circle—the issuer of the USDC stablecoin—Armstrong said there was “nothing to announce today,” but did not rule out the prospect.

Back in April, Bloomberg reported that Circle turned down an acquisition offer from Ripple Labs worth up to $5 billion.

The Deribit acquisition will be funded with $700 million in cash and 11 million Coinbase shares. Analysts believe the deal could significantly boost Coinbase’s presence in the growing crypto derivatives space.

Meanwhile, Coinbase is set to make history as the first crypto company to join the S&P 500 index. The inclusion, which takes effect on May 19, marks a major milestone for both the exchange and the broader digital assets sector. S&P Global announced that Coinbase will replace Discover Financial Services in the index, following Discover’s acquisition by Capital One—a reshuffle that ushers crypto into a benchmark long dominated by traditional finance and tech giants.

Coinbase shares have surged roughly 27% since the announcement, closing Wednesday up 2.5%, according to Yahoo Finance.

For Coinbase and the industry at large, analysts at Bernstein view the S&P inclusion as a watershed moment, estimating it could trigger $16 billion in buying pressure from passive and active funds tracking the index.