Coinbase CEO Teases Acquisition Spree Following $2.9B Deribit Power Play

Wall Street’s latest ’crypto convert’ just put $2.9B where its mouth is—and the checkbook isn’t closing yet.

After snapping up derivatives giant Deribit, Coinbase’s chief is flashing the M&A equivalent of a ’back in 5 minutes’ sign. Because nothing says ’bull market’ like executives playing monopoly with shareholder money.

The move catapults the exchange into the high-stakes world of crypto derivatives—where real traders hedge bets while retail dabblers pray to the leverage gods.

One question lingers: When the SEC finally finishes its coffee break, will these deals hold up—or get the treatment they’d give a Bitcoin ETF application?

Armstrong Silent on Potential Circle Acquisition

The CEO specifically pointed to international markets and companies with similar business models as areas of focus for future acquisitions.

When asked about the possibility of acquiring stablecoin issuer Circle, with which Coinbase already shares revenue, Armstrong did not provide a definitive answer, stating he had “nothing to announce today.”

Meanwhile, Ripple’s attempt to acquire Circle was reportedly rejected as its offer was deemed too low. Circle has also filed to go public.

Deribit Deal Solidifies Coinbase Strategy to Expand into Crypto Derivatives Market

Coinbase’s acquisition of Deribit, the largest global exchange for Bitcoin and Ether options, is a significant move. It reflects the company’s goal to strengthen its position in the crypto derivatives market.

The $2.9b deal includes $700m in cash and 11m shares of Coinbase stock. This is subject to typical purchase price adjustments. In 2022, Deribit processed nearly $1.2t in volume. This shows the strategic importance of the acquisition as Coinbase works to diversify its offerings.

The exchange has long been an active player in the crypto M&A space, consistently seeking to expand its market footprint. Armstrong’s comments suggest that the company will maintain this aggressive growth strategy, particularly in markets that can help accelerate its product development and growth.

As it continues to build on its growth trajectory, the company is also poised to join the prestigious S&P 500 index next week.