Coinbase has engaged in over 40 significant mergers and acquisitions, pouring billions into promising cryptocurrency ventures. With a staggering $100 billion valuation and $10 billion in available cash, this leading U.S. cryptocurrency exchange is continuously hunting for groundbreaking opportunities in the industry.
Recently, Coinbase made headlines for its $2.9 billion purchase of the cryptocurrency options trading platform Deribit in August. The company also made a noteworthy $375 million acquisition of the onchain capital raising platform Echo in October, a move that stirred excitement on social media, particularly due to strategic marketing involving Echo’s founder, who benefitted by receiving an additional $25 million from Coinbase to revive his previously dormant UpOnly podcast.
The narrative of these bold investments encapsulates a calculated strategy driven by extensive research and intention behind every multimillion-dollar move. Aklil Ibbsa, Coinbase’s head of corporate development, elaborated on the firm’s strategies during a recent chat on their daily ‘Chain Reaction’ livestream, stating:
“In many ways, it is a power law distribution. If you’re thinking about how to continue to grow Coinbase or grow any potential acquirer that you’re working on, you’re going to take a lot of shots on goal. Not every single one is going to be a great shot on goal, but the winners really start to pay for the rest of the portfolio.”
Translation: In many ways, it operates like a power law distribution. If you’re thinking about how to keep expanding Coinbase or any potential acquirer, you’ll take many opportunities. Not every one will pan out, but the successful ones compensate for the less successful ones.
Ibbsa emphasizes the importance of mergers and acquisitions, likening their impact to an “ESPN highlight reel” of business triumphs and setbacks over the past six years. He noted some key acquisitions, including the $41 million transaction for Tagomi, which laid the groundwork for Coinbase Prime, and the acquisition of Xapo’s institutional business— a deal that made Coinbase the leading crypto custodian globally at the time.
“Coinbase Prime, in our institutional business, now makes up a significant portion of our revenue so I would toss that on the ESPN highlight reel.”
Translation: Coinbase Prime now constitutes a major source of our revenue, so I would highlight that acquisition as a significant point in our history.
In 2025, Coinbase’s largest acquisition was the $2.9 billion purchase of Deribit, which is yielding strong financial performance post-acquisition.
Ibssa shared insights about the fast-paced nature of his role, filled with various M&A proposals at any moment, aiming to target opportunities that align with Coinbase’s overall product strategy. He notes:
“We have a very clear strategy and direction for the business, and M&A is just a tool for us to help accelerate getting there faster.”
Translation: Our strategy is very well-defined, and M&A is merely a means to expedite our journey towards our goals.
With a commitment to strengthening its position as an “everything exchange,” Coinbase continues to explore paths that align with this vision.
