Coinbase is not slowing down on building its foothold in the crypto market. After it recently acquired one of the biggest crypto derivatives platforms, Deribit, for $2.9 billion, the CEO of the company says the company is looking for other mergers and acquisitions opportunities.
Coinbase’s recent Q1 earnings report sees the company end the quarter with $9.9 billion in U.S. dollar resources in hand. Coinbase CEO, Brian Armstrong, observed that being a public company helps to provide them with an edge. A liquidity currency for strategic takeovers. Nevertheless, he put much emphasis on a cautious attitude. “We don’t swing at every ball thrown at us.”
“We’re always on the lookout,” Armstrong shared during an interview on Bloomberg Television on May 14. “We’ve built up a strong balance sheet, and that gives us the flexibility to make moves when the right opportunity comes along.”
Currently, the Deribit acquisition announcement on May 8th is Coinbase’s biggest deal ever. The $2.9 billion deal involved $700m in cash and stock of 11m shares of the Coinbase company. This ambitious step places the company to further dive into this profitable crypto derivatives market and strengthen its global expansion attempts.
According to Armstrong, international opportunities are especially attractive. He is on the lookout for companies that can help Coinbase speed up its journey to become an innovator and a developer of products.
When asked about the possibility of acquiring stablecoin issuer Circle—Coinbase’s longtime partner that has filed for an IPO—Armstrong remained tight-lipped. “Nothing to announce at this time,” he said.
Coinbase, in the meantime, has passed yet another milestone. Recently, it became the first cryptocurrency company to make it to the S&P 500. Such inclusion can open up for greater interest from investors and improve visibility through passive investment funds.
