Coinbase is acquiring Deribit for $2.9 billion, including $700 million cash, to enhance its standing in the crypto derivatives market, particularly options. This move aims to diversify Coinbase’s revenue streams amid projected downturns. Deribit, a leading options platform, will supplement Coinbase’s existing derivatives business and is set to finalise the acquisition by the year’s end, contingent on regulatory approval.
Coinbase has officially announced its acquisition of Deribit, the leading crypto options exchange, for a substantial $2.9 billion. This deal involves $700 million in cash, with the remainder to be settled in stock. While Deribit may not top the charts in overall crypto derivatives trading, particularly due to the rising popularity of perpetual futures, it firmly stands as the global leader in crypto options with over $30 billion in open interest.
The move is seen as complementary to Coinbase’s existing derivatives business, which has been notably active in perpetual futures. With this acquisition, Coinbase aims to solidify its hold on the derivatives market. Deribit’s CEO, Luuk Strijers, expressed enthusiasm for the joint effort, stating it would usher in a new era for global crypto derivatives, further expanding trading opportunities across various asset types under a unified brand.
Analysts have raised concerns about potential revenue declines for Coinbase. However, the acquisition of Deribit is projected to help stabilise earnings by diversifying revenue streams, especially since options trading tends to be less volatile compared to spot trading. This strategic acquisition could thus play a pivotal role in bolstering Coinbase’s financial performance during turbulent market phases.
Founded in the Netherlands, Deribit has seen its operations shift to Panama and most recently Dubai, a move aimed at providing clearer regulatory frameworks for its predominantly institutional clientele, which constitutes 80% to 90% of its user base. The acquisition deal is poised to close by the end of the year, pending the necessary regulatory approvals, which are a standard procedure in large financial transactions like this one.
