Coinbase is acquiring Dubai-based crypto derivatives exchange Deribit for $2.9 billion, which consists of $700 million in cash and 11 million shares of Class A common stock. This landmark deal is set to enhance Coinbase’s position in the global crypto derivatives market, particularly against competitors like Binance. The acquisition taps into a supportive regulatory climate for the crypto sector, amid a wave of recent consolidation in the industry.
Coinbase has made headlines by agreeing to acquire Dubai’s Deribit, a significant player in the crypto derivatives exchange market, for a staggering $2.9 billion. Announced this Thursday, the deal marks the largest acquisition in the crypto sector to date. The agreement details involve $700 million in cash along with 11 million shares of Coinbase Class A common stock. It’s earmarked for completion by the year’s end, underscoring a major strategic move for Coinbase.
Following the announcement, Coinbase’s shares saw a surge of nearly 6%. This acquisition, according to Greg Tusar, Coinbase’s Vice President of Institutional Product, positions the firm as a formidable international contender in the crypto derivatives landscape, particularly in terms of open interest and options volume. This is a direct challenge to dominant players such as Binance, especially since Coinbase, while leading in the U.S. market, holds a minor stake in the global arena largely controlled by Binance.
Deribit’s performance last year was impressive, facilitating over $1 trillion in trading volume and boasting approximately $30 billion in current open interest. Luuk Strijers, CEO of Deribit, expressed enthusiasm about the partnership, suggesting it heralds a new era in global crypto derivatives. He highlighted the strength and profitability of Deribit’s operations, while stating that this acquisition will enhance opportunities for traders across various platforms—like futures, options, and more—under a single, trusted brand.
Tusar further noted Deribit’s strong history of generating positive adjusted EBITDA, which Coinbase anticipates will only improve post-acquisition. He mentioned this deal not only catalyzes their international growth ambitions but also diversifies revenue streams and bolsters profitability in tackling the evolving crypto landscape.
Significantly, this deal is well-timed with the crypto industry experiencing a supportive regulatory environment, thanks to a pro-crypto stance from the current White House. This momentum has been reflected in rising crypto M&A activities, including Kraken’s $1.5 billion acquisition of NinjaTrader and Ripple’s purchase of prime broker Hidden Road just last month. The crypto world seems poised for substantial transformation in the coming years.
