Major crypto exchange Coinbase has announced the strategic acquisition of crypto options exchange Deribit to “significantly advance” Coinbase’s derivatives business and provide spot, futures, and options under its umbrella. It’s said to be the biggest acquisition in crypto history.
According to the announcement, the agreement is worth some $30 billion of current open interest. That said, Coinbase will buy Deribit for approximately $2.9 billion. Of this, $700 million is in cash, in addition to 11 million shares of Coinbase Class A common stock.
The teams expect the transaction to complete by the end of 2025, but it’s “subject to regulatory approvals and other customary closing conditions.”
Notably, Coinbase says that this is its “most substantial move yet” to boosts its international growth strategy and place itself strategically in “the sizable global crypto derivatives markets.”
Furthermore, Deribit’s platform completes Coinbase’s derivatives offering, adding to the latter’s US futures and international perpetual futures products. The acquisition is a step towards “providing traders access to spot, futures, perpetual futures, and options trading – all in one seamless, capital-efficient platform,” the exchange notes.
The word about a potential acquisition first got around in March this year. Deribit, valued between $4 billion and $5 billion in January, began exploring acquisition opportunities after drawing interest from potential buyers.
Also, Deribit saw $1 trillion in trading volume last year “across key markets ex-US,” including from institutional and advanced traders, the announcement says.
Deribit to ‘Immediately Enhance’ Coinbase’s Profitability
The executives discussed the Deribit acquisition on the Thursday earnings, arguing that Deribit has been “consistently profitable,” as reported by Fortune Crypto. “It strengthens our business by giving us market leadership within options, which we expect to grow, and enhances the profitability.”
The acquisition news accompanies Coinbase’s report of losses in the year’s first quarter. Its net income plunged quarter-over-quarter by 95% to $66 million from $1.29 billion and net revenue fell 10% to $1.96 billion.
“We expect Derebit to immediately enhance our profitability and add diversity and durability to our trading revenues,” said Alesia Haas, Coinbase’s CFO.
Furthermore, in the announcement, Coinbase likened crypto options to the equity options boom of the 1990s. Options trading revenues are also typically less cyclical than spot trading, it adds. Traders use options to manage risk during rising and falling markets alike.
According to Deribit CEO Luuk Strijers, “this acquisition will accelerate the foundation we laid while providing traders with even more opportunities across spot, futures, perpetuals, and options – all under one trusted brand.”
Meanwhile, Coinbase says the retail users in the US can access futures trading via Coinbase Financial Markets and Coinbase Derivatives Exchange. The International Exchange provides spot and perpetual futures products for users outside the US. Now, the Deribit purchase will add access to options markets for international institutional and advanced traders.
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