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Bitcoinist 2025-05-15 08:30:04

Coinbase’s $2.9 Billion Deribit Purchase Sparks Interest In Future Acquisitions, Says CEO

Coinbase, the largest US-based crypto exchange, is set to join the S&P 500 index on May 19, replacing Discover Financial Services amid its merger with Capital One. Brian Armstrong has made key statements ahead of this development, hinting at plans for further acquisitions. ‘Crypto Is Here To Stay’ Brian Armstrong, Coinbase’s CEO, expressed enthusiasm about the inclusion, stating, “We’re very happy to be included in the S&P 500. It now means that crypto is here to stay.” Coinbase’s entry into the S&P 500 is particularly noteworthy as it signifies a shift in how digital assets are perceived within the financial landscape. Armstrong noted that the inclusion would likely influence retirement funds , stating that cryptocurrency could soon be part of everyone’s 401(k) plans. This is crucial because many retirement accounts track the S&P 500, meaning that millions of Americans may indirectly invest in Coinbase through their retirement savings. Analysts predict that this inclusion could lead to substantial capital inflows, with Bernstein estimating up to $16 billion in new investments driven largely by passive index funds. Oppenheimer has also raised its price target for COIN from $269 to $293, reflecting growing optimism about the company’s future. Coinbase Actively Pursuing M&A Opportunities Following its recent $2.9 billion acquisition of Deribit, a leading crypto derivatives exchange, Armstrong indicated that Coinbase is actively exploring further mergers and acquisitions. “We are always looking at M&A opportunities,” he stated during an interview on Bloomberg Television. This strategy aligns with Coinbase’s goal of expanding its market presence and enhancing its service offerings in the rapidly evolving crypto landscape. Deribit, known for its dominance in bitcoin options trading, will bolster Coinbase’s position as a leader in crypto derivatives. This acquisition is the largest in the industry to date and is expected to close by the end of the year, further solidifying Coinbase’s international reach. The firm has shown solid growth since going public in 2021, driven by the increasing value of cryptocurrencies and regulatory approvals for major institutions to launch spot Bitcoin exchange-traded funds (ETFs). In its latest earnings report, the company exceeded earnings expectations with a reported earnings per share of $1.94, reflecting a 7.6% increase year-over-year. However, revenue growth of 24% to $2 billion fell slightly short of analyst forecasts. Despite these mixed results, Coinbase’s strategic initiatives and market positioning suggest a promising outlook. On Wednesday, the exchange’s stock closed at $263.41, up nearly 7% over the previous 24 hours. The recent Deribit deal has sparked notable momentum for the stock, which has risen from a yearly low of $143 reached last April. Featured image from DALL-E, chart from TradingView.com

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