Coinbase Strikes $2.9 Billion Deal to Acquire Crypto Options Exchange Deribit
In a significant move for the cryptocurrency market, Coinbase has announced its acquisition of Deribit for a total of $700 million, which includes cash and shares. This strategic acquisition is set to enhance Coinbase’s offerings, particularly in the realm of crypto options trading.
Coinbase’s Acquisition of Deribit: Key Details
Coinbase’s recent deal to acquire Deribit will see the company pay:
- $700 million in cash
- 11 million shares of its Class A common stock
This acquisition is particularly noteworthy as Deribit boasts an impressive $30 billion in current open interest, underscoring its position in the crypto options market.
Enhancing Institutional Derivatives Offering
According to Coinbase, acquiring Deribit will significantly enhance its institutional derivatives offerings. This includes:
- Integration of crypto options into its existing US futures
- Expansion of its international perpetual futures business
Moreover, this deal is expected to:
- Boost profitability immediately
- Add diversity and durability to trading revenues
Competition in the Crypto Market
The acquisition comes after months of negotiations, during which Coinbase faced stiff competition from other major players in the industry. Notably, Kraken opted to pursue a separate acquisition, paying $1.5 billion for NinjaTrader.
Insights from Deribit CEO
Deribit CEO Luuk Strijers expressed his enthusiasm about the acquisition, stating:
“As the leading crypto options platform, we’ve built a strong, profitable business, and 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.”
This acquisition not only strengthens Coinbase’s position in the cryptocurrency space but also provides a more robust platform for traders looking for comprehensive trading options. For more information on cryptocurrency market trends, visit CoinDesk.
