Key Takeaways
- Coinbase announces the acquisition of the crypto derivatives platform Deribit.
- This acquisition strengthens Coinbase’s position in the lucrative crypto derivatives market.
- Following the announcement, Coinbase’s COIN stock in New York rose.
Coinbase has made another acquisition in the crypto sector: Deribit, the world’s leading crypto options platform.
The deal comes as the cryptocurrency sector is gaining renewed momentum, fueled by increasing political support and growing institutional interest.
Coinbase Acquires Deribit for $2.9 Billion
Coinbase announced on Thursday that it will acquire the derivatives platform Deribit for $2.9 billion. The deal includes $700 million in cash and 11 million Coinbase Class A stock shares.
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U.S. President Donald Trump has voiced strong support for crypto and vowed to make the U.S. the global hub for digital assets, spurring a wave of M&A activity in the sector.
For Coinbase, the acquisition marks a significant push into the lucrative crypto derivatives space, enabling users to trade spot, futures, and options.
“Together with Coinbase, we’re set to shape the future of the global crypto derivatives market,” Deribit CEO Luuk Strijers said in the announcement.
What the Deal Means for Coinbase
Coinbase‘s acquisition of Deribit will integrate Deribit’s options platform with its existing U.S. futures and international perpetual futures.
This provides access to spot, futures, perpetual futures and options trading. With this deal, Coinbase becomes the global leader in crypto derivatives by open interest and options volume.
Deribit, which processed over $1 trillion in trading volume last year, has a strong institutional client base, positioning Coinbase to lead the growing crypto options market, similar to the equity options boom in the 1990s.
The acquisition will also enhance Coinbase’s profitability by adding stable, less-cyclical options trading revenue. Deribit’s track record of generating positive adjusted Ebitda is expected to continue and grow as part of Coinbase.
Spencer Yang, co-founder of Fractal Bitcoin and former Head of Product at Coinbase Wallet, told CCN, “Global derivatives trading is a key driver of growth for Coinbase. Deribit is the platform of choice for global traders for Bitcoin and Ethereum options.”
“Their platform has a strong operating history and is the only major independent company with similar DNA to Coinbase. They’ve not launched a token and have an asset-under-management value of $4 billion. A cash and stock deal is a great bargain for Coinbase shareholders since it helps them expand globally,” Yang said
“I’d love to see Coinbase also offer Bitcoin options trading via broker-dealer on MSTR/IBIT to complement the custodial exchange Deribit acquisition, which is better for global growth. Coinbase also has the FCM/DCM license and with this has captured all possible regulated and self-regulated derivatives products,” he added.
COIN Stock Rises on the News
After the deal was announced, Coinbase’s COIN stock in New York jumped by 5.1% during pre-market trading.
As soon as the bell rang on Wall Street, COIN continued to register gains, showing a 4.8% increase to $205.29.
Despite Thursday’s increase, the stock has been down by over 17% since the beginning of the year, causing the market capitalization to drop to $53.3 billion.
The partnership news has broken just hours before Coinbase reveals its first-quarter results .
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